Trump Pauses De Minimis Repeal Amid Backlog of E-Commerce Packages

TDT | Manama
Email : editor@newsofbahrain.com

On Friday, U.S. President Donald Trump paused the repeal of the de minimis provision, which has exempted low-cost e-commerce packages from duties. This change would have impacted the over 1 billion small-value shipments from China that arrive in the U.S. each year, requiring additional customs procedures and duties. This shift raised concerns about logistical challenges for U.S. Customs, especially with such a sudden implementation.

Disruptions to the Supply Chain
The rapid change, implemented with little notice, caused immediate chaos, particularly at New York’s JFK Airport. The U.S. Postal Service was forced to temporarily stop accepting shipments from China and Hong Kong, leading to significant delays in package processing. Even items that had already paid duties were held up due to the new customs requirements.

Impact on E-Commerce Retailers
Online retailers, such as Shein, Temu, and Amazon, rely on the de minimis exemption to maintain low prices by shipping products directly from Chinese factories to U.S. consumers. These companies faced disruptions, as the new rules threaten to increase the cost and time involved in fulfilling orders. With some companies shipping as much as 9,000 metric tons of cargo daily, the impact was felt across the global supply chain.

Next Steps for the Policy
Following the disruption, the Trump administration’s decision to pause the repeal gives the Commerce Department time to revise and streamline the policy. Logistics experts have warned that without proper adjustments, the new rules could overwhelm U.S. Customs, causing further delays in clearing shipments. It remains unclear if U.S. consumers who paid duties during the disruption will receive refunds.

This was initially reported by Reuters.