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Trump halts de minimis abolition

by Port News Editorial Staff

The White House has temporarily suspended the de minimis abolition.

After issuing an executive order last week that effectively removed the loophole that allowed exporters to ship packages worth less than $800 from China to the US duty-free, the Trump administration has now decided to partially revise that measure, postponing its entry into force until the Secretary of Commerce has adequately assessed the adequacy of the tariff revenue processing and collection systems applicable to items currently eligible for de minimis treatment.

This implies that Washington is currently unprepared to handle the huge flow of merchandise bought by American users on Chinese online platforms arriving in the US: four million parcels a day on average.

In fact, Trump’s U-turn appears to be a response to the massive confusion that has arisen in the industry due to the change in regulations and the build-up of parcels at US airport facilities. Since 2023, Chinese and US sellers have rushed to take advantage of de minimis, which also requires limited customs documentation.

US Customs & Border Protection is the main agency that has to implement the de minimis abolition, but other agencies are also involved.

Last weekend, without warning, the Trump administration removed the de minimis exemption and imposed a 10% tariff on all Chinese products. The move effectively made direct-to-consumer parcels subject to tariffs of up to 38% if previous tariffs are counted.

Translation by Giles Foster