The Trump administration abruptly ended the de minimis exception, a long-standing policy allowing duty-free entry for low-value shipments from overseas. This move has created chaos in the e-commerce industry, forcing businesses to rethink shipping practices and consumers to brace for potential price increases and delivery delays.
The Trump administration abruptly ended a decades-old policy known as the de minimis exception , which allowed low-value shipments from overseas to enter the U.S. duty-free. The executive order, signed on Wednesday, effectively requires all small packages, many of which originated from China , to pay tariffs, even if their value is below $800. The move, seemingly aimed at increasing revenue and curbing the influx of untaxed goods, has thrown the cross-border e-commerce industry into disarray.
The sudden implementation of the new policy has left many businesses scrambling to adapt. The U.S. Postal Service, which handled a significant portion of these small packages, announced it would temporarily halt accepting parcels from mainland China and Hong Kong. Other businesses are adjusting their shipping practices, with some, like Temu, increasing their warehousing capacity in the U.S. to minimize delays and costs associated with tariff filings. Critics of the de minimis exception had long argued that it allowed for widespread tariff evasion and the importation of counterfeit and unsafe products. Supporters, however, countered that it kept prices low for both consumers and businesses, particularly small ones. The decision to end the de minimis exception is expected to have significant implications for both consumers and businesses. Analysts predict that prices for imported goods may rise as companies pass on the cost of tariffs. Delivery times could also be impacted as customs officials grapple with a surge in paperwork and scrutiny. The long-term effects of this policy shift are still unfolding, but it marks a significant change in the landscape of cross-border e-commerce
E-Commerce De Minimis Exception Tariffs Trump Administration Cross-Border Trade China
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