Trump Pauses De Minimis Tariff Repeal After Trade Chaos

The temporary reversal follows widespread disruptions in shipping and commerce caused by the abrupt removal of the duty-free exemption for low-value imports.

President Trump reinstated the de minimis exemption, allowing packages valued under $800 to enter the U.S. duty-free, after its removal caused logistical and economic disruptions.
The initial repeal of the exemption, coupled with a new 10% tariff on Chinese goods, led to package delays, unexpected import fees, and halted shipments from major retailers like Shein and Temu.
Customs and Border Protection faced significant challenges processing over a billion annual low-value shipments, prompting concerns about overwhelmed systems and delivery backlogs.
The temporary reinstatement will remain in effect until the Commerce Department establishes systems to efficiently process and collect tariffs on affected packages.
Retailers and e-commerce platforms are exploring strategies, such as U.S.-based warehousing and supply chain adjustments, to mitigate the impact of potential long-term changes to the trade exemption.