Since February 1, 2025, significant developments have occurred concerning the United States’ ‘de minimis’ trade policy, particularly affecting imports from China. On February 1, President Trump issued an executive order revoking China’s eligibility for the de minimis exemption, which previously allowed duty-free imports of goods valued under $800. This action aimed to prevent Chinese companies from circumventing U.S. tariffs by shipping low-value goods directly to consumers.
However, on February 7, President Trump amended this order, temporarily reinstating the de minimis exemption for Chinese-origin goods. This reinstatement is in effect until the Secretary of Commerce establishes adequate systems to process and collect tariff revenues on these imports.
These policy shifts have had notable impacts on the retail industry. Fast-fashion retailer Forever 21 filed for bankruptcy for the second time in six years, attributing its financial struggles partly to competition from Chinese e-commerce platforms like Shein and Temu. These platforms have leveraged the de minimis exemption to offer lower-priced goods, challenging traditional U.S. retailers.
The temporary reinstatement of the de minimis exemption has provided a reprieve for Chinese e-commerce platforms, allowing them to continue duty-free shipments to U.S. consumers. However, this situation remains fluid, as the exemption will cease once the Department of Commerce implements systems to effectively process and collect tariffs on these imports.
To understand the impact on the e-commerce logistics market if the de minimis rules threshold is abolished, pre-order Ti’s latest e-commerce Logistics and e-fulfilment Market Report, available on Tuesday 1st April.
Author: Ti Insight
Source: Ti Insight
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