Trump Temporarily Reinstates Duty-Free Exemption for Small Packages

President Trump has delayed the suspension of the de minimis provision, which allows duty-free imports of goods valued at $800 or less, a decision that supports Chinese e-commerce platforms like Temu and Shein. The delay will remain until the Commerce Department can establish adequate systems for processing tariff revenue, following concerns over U.S. Customs and Border Protection's capacity to handle the influx of low-value shipments. This provision has enabled over 1.3 billion such shipments in 2024 and is critical for many online retailers, including Amazon and eBay. Shopify has expressed strong support for maintaining the de minimis rule, emphasizing its importance for small businesses engaged in international trade. Critics argue that the provision undermines U.S. regulatory efforts to track counterfeit goods and creates an uneven playing field favoring Chinese companies. Despite the temporary reprieve, the future of the de minimis exemption remains uncertain as new regulations are considered.