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U.S. President Donald Trump temporarily suspended measures to close tariff exemptions from low-cost goods in China, while officials figured out how to tax the millions of packaging that arrive in the U.S. every day.
The White House said in an amendment to an executive order signed on Wednesday and issued Friday, the White House said the so-called De Minimis Propisions, which exempts goods worth no more than $800 from tariffs and strict customs checks, will always be Stay in place until “the appropriate system is sufficient and convenient for handling and collecting tariff revenues”.
De Minimis rules are designed to help families and small businesses buy low-cost items from abroad without causing them to be subject to heavy customs inspections. In recent years, it has proven the boon of e-commerce platforms delivered directly to consumers (such as Shein and Temu in China).
Trump lifted an executive order last week, announcing an additional 10% tariff on Chinese goods, and the White House said it aims to punish Beijing to allow the deadly opioid fentanyl to flow into the United States.
But analysts warn that the decision to take effect in a few days will force customs officials to apply a more complex formal entry process to every package from China.
According to experts, this will also make the parcels previously qualified for De Minimis, not only subject to an additional 10% tariff but also comply with existing trade taxes.
The U.S. Postal Service suspended Chinese goods receipts, including Hong Kong, on Tuesday, when tariffs took effect and then backtracked a day later to accept the goods.
USPS said it is working with customs officials to establish an “effective collection mechanism” as the rapid implementation of the directive increased the workload of customs officials and caused turmoil for exporters and freight carriers.
U.S. officials have long had the minimum rules in sight. Domestic retailers who have mass-produced overseas purchases complain that the exemption gives China’s e-commerce group an unfair cost advantage.
The administration of former U.S. President Joe Biden has proposed measures to strengthen rules regarding the De Minimis regime.
U.S. Customs and Border Protection estimates it handles more than 4MN of low-value goods per day. A report from the Congressional Elections Committee estimated that about 30% of the parcels came from Temu and Shein.
The move to repeal the minimum exemption was attacked this week by Chinese e-commerce sellers, who said some logistics groups are charging withholding fees to cover taxes and other customs fees.
A report by analysts at Nomura, Japan’s investment bank, estimates that under 2024, China provides US$46 billion worth of parcels to the United States, and the cancellation of the waiver could reduce China’s economic growth by 0.2 by 2025 percentage point.
Trump is expected to call Chinese leader Xi Jinping in the coming days to avoid escalating trade tensions, and China’s retaliatory tariffs on the United States will take effect on Monday. But the U.S. president said on Tuesday that he was “not in a hurry” to talk to his Chinese counterparts.
