De minimis shipping from China axed under Trump tariffs

President Donald Trump’s tariff plans put the de minimis exemption on the chopping block for China, Canada and Mexico imports, presenting challenges for e-commerce supply chains reliant on low-cost shipping.

Trump signed executive orders Saturday to implement 25% tariffs on goods from Canada and Mexico, along with an additional 10% tariff on China-based imports. The orders covering each country said duty-free de minimis treatment won’t be available for products for which the tariffs apply.

Tariffs on China took effect Tuesday, bringing with it the end of de minimis eligibility for “most products of China,” according to a U.S. Customs and Border Protection notice. Duties on Canada and Mexico have been delayed until March.

The de minimis exemption, which allows shipments of less than $800 to avoid import duties and taxes, has become a critical tool in e-commerce supply chains to limit cross-border shipping costs. It also has garnered increased scrutiny from U.S. lawmakers and officials looking to combat contraband from entering the country via low-cost packages. Customs and Border Protection already has plans in place to restrict some goods from using the exemption.

Discussions between the U.S. and affected countries are ongoing, leaving the door open for adjusted tariff timelines or new agreements that could change how de minimis-reliant supply chains are impacted by Trump’s trade actions. However, with the exemption targeted as part of Trump’s tariffs, businesses will have to adapt their order fulfillment and shipping processes to navigate choppy geopo…