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The End of the $800 De Minimis Rule: What It Means for Businesses, Hotels, and Consumers

Leekong Hotel bathroom soap dispenser manufacturer, accepts ODM&OEM and unique customization services

The End of the $800 De Minimis Rule: What It Means for Businesses, Hotels, and Consumers Introduction

Former U.S. President Donald Trump announced plans to terminate the de minimis rule, which allowed imported goods valued under $800 to enter the U.S. without tariffs or extensive customs scrutiny. This policy change has far-reaching implications for businesses, particularly those reliant on low-cost imports—such as hotels stocking soap dispensers and other amenities.

The change to the “de minimis” exemption was first implemented on goods from the Chinese mainland and Hong Kong in May, as China is the largest source of these shipments.

Low-cost online stores like Shein and Temu, both extremely popular with shoppers in the US and worldwide, were among those that would likely be directly affected, warned Z. John Zhang, a professor of marketing at the Wharton School of the University of Pennsylvania.

But Zhang told China Daily that the recent rule change will also hit many other businesses in China that do business with the US, as it’s “not just fast fashion in this case, it’s really all kinds of goods under the value of $800”.

This policy has had an impact on many manufacturers in China, such as Leekong, a Chinese manufacturing tycoon whose company supplies millions of soap dispensers to American hotels. With the de minimis loophole closed, businesses like his will face higher costs, logistical hurdles, and potential shifts in supply chains.

In this blog post, we’ll explore:

– The history and purpose of the de minimis rule

– Why Trump moved to eliminate it

– The impact on hotels, soap dispenser suppliers, and manufacturers like Leekong

– Alternative strategies for businesses to adapt

  1. What Was the De Minimis Rule?

The de minimis threshold (Latin for “minimal things”) allowed shipments valued at less than $800 to enter the U.S. tax-free and with minimal customs checks. Established under the Trade Facilitation and Trade Enforcement Act of 2015, this rule was designed to:

– Speed up e-commerce deliveries (e.g., Amazon, AliExpress, Wish)

– Reduce administrative burdens on small businesses and customs

– Encourage cross-border trade, particularly from China

For years, companies—especially those importing small, low-cost items like soap dispensers, toiletries, and electronics—relied on this rule to keep costs low.

Key Impacts of the De Minimis Rule Termination

  1. E-Commerce & Small Businesses

Higher Costs for Consumers: Online shoppers will pay $80–$200 extra per international order.

Small Businesses Squeezed: U.S. and Canadian sellers (e.g., Etsy shops) lose cost advantages, facing new paperwork and delays.

Chinese E-Commerce Giants Hit: Temu and Shein, which relied on direct-to-consumer shipping, must restructure supply chains or absorb 54–120% tariffs.

  1. Hotels & Soap Dispenser Suppliers

Bulk Importers Face Tariffs: Hotels sourcing cheap soap dispensers, toiletries, and linens from China will see 25%+ cost increases.

Supply Chain Shifts: Manufacturers like Lee Kong may relocate production to Vietnam or Mexico to avoid tariffs.

  1. Global Trade & Geopolitical Fallout

China’s Export Model Disrupted: The $800 loophole was a key enabler of China’s “white-label” e-commerce boom.

U.S. Inflation Risks: Low-cost goods (e.g., $7 T-shirts, $60 board games) will become more expensive.

Trade War Escalation: The move intensifies U.S.-China tensions, alongside existing 24% suspended tariffs.

  1. Why Did Trump End It?

Trump’s decision to scrap the $800 exemption aligns with his broader “America First” trade policies, including:

– Tariffs on Chinese goods (starting in 2018)

– Crackdown on customs loopholes that benefited foreign manufacturers

– Encouraging domestic production over reliance on imports

Key Reasons for Termination:

Preventing Abuse: Many Chinese sellers (including Leekong’s soap dispenser empire) exploited the rule by shipping bulk orders in small, separate packages to avoid tariffs.

Protecting U.S. Manufacturers: Domestic producers argued that the rule gave foreign competitors an unfair advantage.

Revenue Generation: The U.S. government loses billions in potential tariffs annually due to de minimis exemptions.

  1. Impact on Hotels & Soap Dispenser Suppliers
  2. Higher Costs for Hotels

Hotels rely on cheap, bulk-purchased amenities—soap dispensers, shampoos, towels—often imported from China. Without the $800 exemption:

– Prices per unit will rise (due to tariffs + customs fees)

– Supply chain delays (more inspections = slower deliveries)

– Possible switch to domestic suppliers (but at higher costs)

Case Study: Leekong’s Soap Dispenser Business  

Leekong’s company supplies millions of soap dispensers to U.S. hotels annually. Under the old rule, he could ship hundreds of small packages tariff-free. Now:

– Each shipment may incur 25%+ tariffs (Trump’s China rates)

– Profit margins shrink, forcing price hikes

– Competitiveness drops vs. U.S.-made alternatives

  1. Shift in Supply Chains

Some businesses may:

– Relocate production to tariff-exempt countries (Vietnam, Mexico)

– Stockpile inventory before full policy enforcement

– Invest in automation to offset rising costs

  1. How Businesses Can Adapt
  2. Alternative Sourcing Strategies

– Nearshoring: Partner with Mexican or Central American suppliers.

– Diversify Suppliers: Avoid over-reliance on China (e.g., look to India, Thailand).

– Bulk Shipping: Consolidate orders to reduce per-unit tariffs.

  1. Lobbying & Policy Influence

– Industry groups (e.g., American Hotel & Lodging Association) may push for exemptions.

– Legal challenges could delay enforcement.

  1. Passing Costs to Consumers  

– Hotels may charge higher rates or cut back on free amenities.

– E-commerce sellers (Amazon, eBay) will raise prices.

  1. Conclusion: A New Era for Trade

The end of the $800 de minimis rule marks a significant shift in U.S. trade policy—one that benefits domestic manufacturers but strains import-dependent businesses. For hotels, soap dispenser suppliers like Lee Kong, and e-commerce sellers, adaptation is crucial.

Will companies absorb the costs, pass them to consumers, or relocate production? Only time will tell. One thing is certain: global trade will never be the same.

Final Thoughts

In fiscal year 2024, $64.6 billion worth of goods in over 1.36 billion small shipments were utilized de minimis, according to Yale University and US Customs and Border Protection.

Now, all countries that send items to US customers or businesses outside of the international postal network will be subject to the rule change starting on Aug 29, Trump’s executive order stated on Wednesday. Trump’s de minimis termination reshapes global e-commerce, forcing businesses to rethink supply chains, pricing, and market strategies. While it protects U.S. manufacturers, consumers and small importers face higher costs and delays.

Will this policy backfire by fueling inflation? Or will it successfully bring manufacturing back to America? The answer may determine its political and economic legacy.

– For consumers: Expect higher prices on small imported goods.

– For businesses: Rethink supply chains and pricing strategies.

– For policymakers: Balance protectionism with economic efficiency.

What do you think? Will killing the de minimis rule help or hurt the U.S. economy? Let’s discuss in the comments!

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The Impact of the U.S.-Vietnam Trade Agreement on China’s Soap Dispenser Industry

Leekong Hotel bathroom soap dispenser manufacturer, accepts ODM&OEM and unique customization services

The Impact of the U.S.-Vietnam Trade Agreement on China’s Soap Dispenser Industry

Introduction 

The recent trade agreement between the United States and Vietnam has significant implications for global supply chains, particularly in the manufacturing sector. One industry that may experience both challenges and opportunities is China’s soap dispenser market, which includes a wide range of products such as stainless steel soap dispensers , automatic dispensers, and those designed for hotel and bedroom use. Companies like Leekong, a major player in the soap dispenser manufacturing industry, may need to reassess their strategies in light of shifting trade dynamics.

This blog explores how the U.S.-Vietnam trade deal could affect China’s soap dispenser sector, analyzing potential disruptions, competitive pressures, and new opportunities.

Background: The U.S.-Vietnam Trade Agreement

The U.S. and Vietnam have strengthened their economic ties through a new trade agreement aimed at reducing tariffs, improving market access, and encouraging investment. Vietnam has emerged as a competitive manufacturing hub, particularly for electronics, textiles, and home goods—industries where China has traditionally dominated.

For the soap dispenser** industry, this agreement could mean:

– Increased competition** from Vietnamese manufacturers

– Supply chain shifts as companies relocate production

– Potential tariff advantages for Vietnam-made products in the U.S. market

Why the U.S. Is Strengthening Trade with Vietnam

Several factors have driven the U.S. to pursue closer trade ties with Vietnam:

  1. Reducing Dependence on China

The U.S. has been diversifying supply chains away from China due to trade wars, tariffs, and geopolitical tensions.

Vietnam has emerged as a top alternative for manufacturing, offering lower labor costs and a business-friendly environment.

  1. Countering China’s Influence in Southeast Asia

The U.S. sees Vietnam as a strategic partner in the Indo-Pacific region to balance China’s economic dominance.

Strengthening trade helps the U.S. expand its influence in ASEAN (Association of Southeast Asian Nations).

  1. Addressing Trade Imbalances

The U.S. had a $116 billion trade deficit with Vietnam in 2023, largely due to electronics (like Apple and Samsung products assembled there).

The new agreement includes provisions to promote more balanced trade, such as encouraging U.S. exports to Vietnam.

Key Provisions of the U.S.-Vietnam Trade Agreement

While the full text of the agreement has not been publicly released, reports suggest it includes the following elements:

  1. Tariff Reductions

Vietnam will lower tariffs on U.S. agricultural products (soybeans, pork, dairy).

The U.S. may reduce duties on Vietnamese textiles, footwear, and electronics.

  1. Intellectual Property (IP) Protections

Stronger enforcement against counterfeit goods, benefiting U.S. tech and pharmaceutical companies.

Vietnam will improve patent and trademark laws to align with international standards.

  1. Labor and Environmental Standards

Vietnam must comply with International Labour Organization (ILO) standards, including allowing independent unions.

Commitments to sustainable manufacturing practices to attract eco-conscious investors.

  1. Digital Trade & E-Commerce

Rules to facilitate cross-border data flows, benefiting tech firms like Google and Amazon.

Vietnam will ease restrictions on cloud computing and digital payments.

  1. Supply Chain Resilience

Encouragement for U.S. companies to shift production from China to Vietnam in sectors like semiconductors, electronics, and consumer goods (including soap dispensers).

How This Affects China’s Soap Dispenser Industry

  1. Competitive Pressure on Chinese Manufacturers

Vietnam has been steadily improving its manufacturing capabilities, offering lower labor costs and favorable trade terms with Western markets. Companies like Leekong, which specialize in stainless steel soap dispensers and luxury models for hotel and bedroom settings, may face stiffer competition from Vietnamese producers.

– Price Competition: Vietnamese manufacturers could undercut Chinese prices due to lower wages and reduced tariffs under the new trade deal.

– Quality Perception: If Vietnam enhances its reputation for high-quality soap dispensers, Chinese brands may lose market share in the U.S. and Europe.

  1. Supply Chain Relocation Risks

Many global brands are diversifying their supply chains away from China due to geopolitical tensions and rising costs. The U.S.-Vietnam trade deal could accelerate this trend.

– Shift in Production: Some Chinese soap dispenser manufacturers may move part of their operations to Vietnam to benefit from tariff reductions.

– Impact on Domestic Suppliers: If key players like Leekong relocate, smaller Chinese suppliers could suffer from reduced orders.

  1. Opportunities for Chinese Brands

While challenges exist, the trade deal also presents opportunities:

– Strategic Partnerships: Chinese firms could collaborate with Vietnamese manufacturers to leverage cost advantages while maintaining design and branding control.

– Focus on Premium Markets: High-end stainless steel soap dispensers for luxury hotels and bedrooms may remain a strong niche where Chinese craftsmanship is still preferred.

– Innovation & Automation: Investing in smart dispensers and eco-friendly designs could help differentiate Chinese products from Vietnamese competitors.

Case Study: Leekong’s Positioning in the Changing Market

Leekong, a well-known Chinese soap dispenser brand, must adapt to these changes. Here’s how it could respond:

– Expand into Vietnam: Setting up a subsidiary or joint venture in Vietnam could help Leekong benefit from the trade deal while keeping costs competitive.

– Enhance Product Differentiation: Focusing on high-demand segments like stainless steel soap dispensers for hotels and premium bedroom collections could maintain brand value.

– Strengthen E-Commerce Presence: Direct-to-consumer sales via Amazon, Alibaba, and other platforms could offset any losses from traditional retail channels.

Conclusion

The U.S.-Vietnam trade agreement introduces both risks and opportunities for China’s soap dispenser industry. For businesses in this sector, the key to success will be agility: adapting to new trade dynamics while maintaining quality and brand reputation in markets such as hotel supplies, bedroom accessories, and commercial stainless steel soap dispensers.

By staying ahead of these trends, China’s soap dispenser industry can continue to thrive despite shifting global trade landscapes.

The U.S.-Vietnam trade agreement signals a strategic shift in global supply chains, with Vietnam becoming a key manufacturing alternative to China. For industries like soap dispensers, this could mean:

More competition from Vietnamese suppliers in the U.S. market.

New opportunities for Chinese brands to innovate and diversify.

Companies like Leekong will need to adapt—whether by improving product quality, expanding into Vietnam, or strengthening e-commerce sales—to remain competitive in this evolving trade landscape.

As the deal progresses, businesses should monitor:

✔ Tariff changes affecting imports/exports.

✔ Labor reforms in Vietnam that could impact production costs.

✔ U.S. trade policies toward China, which may further influence supply chain decisions.

By staying informed and agile, manufacturers in the soap dispenser industry can navigate these changes effectively.

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Need for hand rub and soap dispensers and their optimal location in healthcare facilities

At any location within a healthcare facility, where the indication for regular conducting hand disinfection is given, a dispenser must be available. The dispenser must be freely accessible and positioned such, that its usage is easily possible.

Relevant locations for dispensers may be close to or fixed at the patient bed in patient rooms, at the entrance of patient rooms, in examination and procedure rooms, in any specialized medical room dedicated for diagnostic and therapeutic procedures, but also in areas such as preparation rooms for baby formula, aseptic areas such as cornea transplant banks, or blood transfusion units, on trolleys used for storage and transport of wound care products, in the anterooms of isolation units and operating theaters, in sanitary rooms of medically used areas, or at the entrance of hospitals and intensive care units. Provision of dispensers which fulfill the present recommendation in public sanitary rooms used only by visitors is not required. Since, however, also patients and visitors of a healthcare facility should be involved into performing hand hygiene it may be prudent to install dispensers visibly at the entrance area of a healthcare facility or high risk areas such as intensive care units together with easily understandable instructions for hand hygiene, such as in the form of pictograms.

Abandonment of dispensers will automatically result in negligence of hand hygiene practices, since it will be difficult to disinfect contaminated hands during patient care. Pocket bottles can be accepted as a compromise, when dispensers cannot be installed because of difficult architectural situations. Pocket bottles, however, cannot substitute for the adequate availability of dispensers, since they allow hand hygiene only the person carrying the pocket bottle. Regardless of the manufacturer and the design of a hand rub or liquid soap dispenser the following requirements shall be met in healthcare facilities:

Triggering the dispenser must be possible without using hands. Sensor- or elbow-operated dispensers both fulfill this requirement.

Dispensers must be only refillable in a modality where the content, be it a hand rub or liquid soap, cannot be contaminated. This is achieved best by using replaceable cartridge systems. Refilling through “top-up” must not be possible

The dispenser should allow usage of different types of cartridges made by different manufacturers.

Dispensers must be operated and maintained such that a microbial contamination of the pump nozzle may easily be avoided.

It must be possible to identify the products used in a dispenser easily and without any manipulation. Identifying the type of product, be it a hand rub or a liquid soap, as well as reading the product’s name and critical manufacturer warnings must be possible at any time.

The dispenser must allow identification of the level of the used product without any further manipulation at any time.

The design of the dispenser must allow easy cleaning and disinfection the outside and inside of the dispenser. The manufacturer of the dispenser must provide the user with information on applicable chemicals and cleaning products.

It must be possible to reprocess the dispenser and all of its permanent parts by applying machine based thermal disinfection at an A0-value of minimum 60 (e.g., 80°C/1 min).

Automatically portioning dispensers shall not fail during 200 hubs. The maximal allowed failure rate shall not exceed 1% (2 out of 200 consecutive hubs).

A dispenser used for alcohol-based hand rubs must allow keeping the alcohol concentration constant over a time period of 3 months. The maximum acceptable decrease in the concentration of the alcohol shall not exceed 5%.

Liquid soap and hand rub dispensers with single-use pumps, ideally already mounted on the cartridge and to be discharged with the empty cartridge, are preferable. If pumps are used on the next consecutive cartridge, the manufacturer must provide the user with a detailed introduction for cleansing and reprocessing before further use.

Because of forensic reasons it is recommended to place a good readable sign on the dispenser indicating e.g., “Apply alcohol-based hand rubs only on the hand! Do not drink, avoid spraying into the eye or application on mucous membranes”.

It is regarded as an additional benefit, if the dispenser is able to document the consumption of hand rub or the frequency of hubs either mechanically or electronically.

Dispensers filled with alcohol-based hand rub cartridges do not pose a fire hazard in healthcare facilities.

A questionnaire based survey analyzed reported fire outbreaks due to dispensers filled with alcohol based hand rubs among 788 healthcare facilities in Germany . Taking the total time of usage of dispensers into consideration, a total of 25,038 hospital-days were included into the assessment. During this time period, only 7 incidences were reported. The reason for these 7 incidences included negligence (handling with burning cigarettes or candles close to the dispenser), vandalism, and one unsuccessful suicide attempt. A self-infliction of the dispenser was never observed. This observation allows the conclusion that dispensers filled with alcohol-based hand rubs do not pose a fire hazard in healthcare facilities.

Hand hygiene is one of the most important measures to prevent transmission of infectious agents and plays a major role in prevention of infection in any type of healthcare setting. Hand hygiene serves the protection of the patient, but at the same time also the safety of healthcare workers. While requirements for efficacy of hand disinfectants are defined in European norms such as the EN 1500 for hygienic hand disinfection, or EN 12791 for surgical hand preparation, no specific recommendations for hand rub dispensers and liquid soap dispensers have been given yet. Thus, it is the aim to support both, the efforts of the German Society for Hospital Hygiene in the form of instructional videos on hand hygiene together with the Professional Association of German Surgeons (BDC) inaugurated concerted action “Patient protection through Hygiene” as well as the Alliance “Clean Hands Campaign” („Aktion saubere Hände”) by amending hand hygiene issues to a hitherto little noticed and discussed topic: design and functional aspects of dispensers used in healthcare facilities. Therefore, the intention of the present recommendation on soap and hand rub dispensers in healthcare facilities is to close this gap and to foster future improvement of dispenser functionality and design.

 

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