On Friday, President Donald Trump signed an executive order that pauses the closure of the de minimis trade exemption.
This exemption is particularly beneficial for Chinese e-commerce companies such as Temu and Shein, allowing them to ship small packages to the U.S. without incurring tariffs.
The new order specifies that the de minimis exemption will be reinstated for small packages shipped from China.
However, it will no longer be available once the Secretary of Commerce informs the President that the necessary systems are in place to effectively process and collect tariff revenue on those items.
This decision comes in the wake of Trump’s announcement on Saturday, where he suspended the de minimis exemption as part of new tariffs that include a 10% increase on Chinese goods.
The de minimis provision, which has been in place for nearly a century, allows for goods valued at less than $800 to enter the U.S. duty-free.
This provision has provided a competitive edge for many e-commerce businesses by enabling them to offer lower prices on items shipped to American consumers.
Source (CNBC)
