Trump Administration Delays Suspension Of Duty-Free Imports From China Under De Minimis Rule

The Trump administration has decided to delay the suspension of the de minimis provision, which allows duty-free entry for packages valued under $800.

What Happened: The delay will remain in place until the Commerce Department can establish systems to efficiently process and collect tariff revenues, according to a new executive action announced on Friday.

This decision affects both Chinese e-commerce platforms like Shein, Temu, and Aliexpress, and U.S. retailers such as Amazon.com Inc., eBay Inc., and Etsy Inc., which ship goods from China.

The de minimis provision was part of a broader announcement by Donald Trump regarding 10% tariffs on Chinese goods, a move that could significantly impact global trade dynamics.

Chinese e-commerce giants have leveraged this exemption to build their business models, allowing over a billion packages to enter the U.S. at low costs.

The executive order did not specify the duration of the delay, and Packard suggested it might be a strategic trade negotiation tactic.

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Why It Matters: The delay of the de minimis suspension comes amid escalating trade tensions between the U.S. and China.

On Feb. 2, Trump imposed tariffs on imports from China, Canada, and Mexico, including a 10% duty on Chinese goods.

This move was met with a retaliatory response from China, which announced new tariffs on certain U.S. imports, effective Feb. 10.

Further intensifying the situation, Trump announced plans to introduce reciprocal tariffs affecting all trading partners, signaling a potential escalation in the trade war.

The delay in suspending the de minimis rule could be a strategic move amid these ongoing trade negotiations.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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