Trump Delays De Minimis Repeal, E-Commerce Disruptions Continue

U.S. President Donald Trump temporarily halted his administration’s repeal of duty-free treatment for low-cost packages from China, allowing the Commerce Department time to refine the order. The abrupt change disrupted customs inspections, postal services, and online retailers relying on the de minimis rule, which exempts imports under $800 from duties and standard customs procedures.

Over 1 billion small-value e-commerce packages arrive annually in the U.S., with major platforms like Shein, Temu, and Amazon’s Haul service leveraging de minimis to minimize costs. The initial repeal, implemented with just 48 hours' notice, caused the U.S. Postal Service to suspend package acceptance from China and Hong Kong, leading to customs bottlenecks. At New York’s JFK Airport alone, over a million packages were reportedly stuck.

Trump’s decision to end de minimis aimed to curb fentanyl trafficking. However, data suggests only 0.2% of fentanyl seizures occur at the Canadian border, while the majority enter through the southern border. The policy shift overwhelmed U.S. Customs and Border Protection, already struggling with limited staffing and outdated processes.

The disruption forced logistics firms and retailers to adapt, with companies like Shein and Temu canceling air cargo flights under force majeure clauses. Consumers also faced unexpected duty charges on previously exempt items like clothing. Industry experts warn that a full repeal will significantly impact e-commerce, increasing costs and shipping delays.

Logistics firms, including SEKO Logistics and DHL, are working to navigate the changes, but uncertainty remains. As customs begins releasing held packages, businesses and consumers continue to adjust to the evolving trade landscape.