Trump Pauses Cancellation of De Minimis Trade Exemption for Chinese Imports

On Friday, President Donald Trump signed an executive order that halts the process of closing the de minimis trade exemption, benefiting several Chinese e-commerce companies like Temu and Shein.

The executive order specifies that the de minimis exemption will be reinstated for small packages shipped from China. However, this availability will end once the Secretary of Commerce informs the President that sufficient systems are in place to efficiently process and collect related tariff revenue.

Initially, on Saturday, Trump had announced the suspension of this exemption as part of a new set of tariffs, which include an additional 10% tax on imports from China. The de minimis provision, which has existed for nearly a century, allows e-commerce businesses to ship goods valued under $800 to the U.S. without incurring duties. This rule has created a competitive advantage for numerous online retailers.

Experts have warned that eliminating the de minimis exemption could overwhelm U.S. Customs and Border Protection (CBP) officers. Currently, there is a considerable volume of low-value shipments entering the U.S. that would suddenly require formal processing under the new rules.

The de minimis rule has significantly contributed to the increase in low-cost goods being shipped from China to the U.S. In fact, the CBP reported that it processed more than 1.3 billion de minimis shipments in 2024. A report released by the House Select Committee on the Chinese Communist Party in 2023 indicated that Temu and Shein are responsible for an estimated 30% of these de minimis shipments, with close to half of all such shipments originating from China.

Trump, deMinimis, Trade