Trump Suspends Duty-Free Imports: Impact on Trade & Supply Chains

President Donald Trump’s latest tariff orders on Canada, Mexico, and China include a suspension of the de minimis exemption, which previously allowed duty-free imports under $800 per shipment. This exemption has been widely exploited, particularly by Chinese e-commerce platforms and criminal networks trafficking fentanyl precursors into the U.S.

By closing this loophole, the administration aims to curb fentanyl trafficking, which caused nearly 75,000 overdose deaths in 2023, according to the CDC. However, trade experts warn that the move will also disrupt businesses that rely on small, duty-free shipments—impacting companies like Shein and Temu that have used de minimis rules to avoid tariffs.

The U.S. Customs and Border Protection (CBP) processes over 1 billion de minimis shipments annually, with China accounting for $4.7 billion in such imports in 2023. While the suspension applies only to Canada, Mexico, and China, it remains unclear whether the U.S. will expand the restrictions globally or make them permanent.

For importers, navigating these new trade policies will be critical in the coming months as regulatory changes take shape.

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