Tariffs on low-cost, or de minimis, packages from China will be paused until the Department of Commerce confirms that proper measures, procedures, and systems have been instituted to ensure comprehensive package processing and duty collection.
The president signed several executive orders on Feb. 1 that canceled the decades-old exception for all goods imported from Canada, Mexico, and China
“We need to protect Americans, and it is my duty as president to ensure the safety of all,” Trump said on social media platform X on Feb. 1.
Digital commerce companies worldwide have exploited the exemption to send duty-free goods worth less than $800 to the United States. Industry experts say this has created a competitive advantage for Chinese e-commerce companies such as Shein and Temu.
Removing the de minimis exemption was expected to flood U.S. Customs and Border Protection (CPB) with low-value shipments requiring formal processing, including inspection and duties.
Businesses and private carriers were left scrambling as the industry sought more explicit government guidance
Robert Khachatryan, CEO and founder of Freight Right Global Logistics, says this is a welcomed pause for international trade for now.
“While any traffic-related pause is good news for now, the broader policy is a wake-up call that such drastic steps need to be phased in and developed in conjunction with those in the logistics sector,” Khachatryan told The Epoch Times
De Minimis and Fentanyl
Khachatryan says there is little incentive for Chinese and other foreign e-commerce sellers to comply with the rules because there are no penalties for noncompliance.
Formaldehyde-laced flooring and counterfeit goods are some of the noncompliant de minimis products, he noted. However, fentanyl, a powerful synthetic opioid that is the leading cause of death for Americans aged 18–45, is the top issue.
Trump administration officials have targeted these packages as part of widespread efforts to crack down on the drug trade
Rep. Linda Sanchez (D-Calif.), ranking member of the House Ways and Means Trade Subcommittee, estimated that 90 percent of fentanyl currently in the country comes from packages entering the United States under the de minimis policy.