Customers encounter non-delivered orders and delays following the conclusion of the de minimis exemption
The de minimis rule, which allowed merchandise worth $800 or less to bypass import tax, expired at 12:01 a.m. on Friday. This significant change will affect American consumers, businesses, and independent sellers alike.
President Donald Trump's executive order states that transportation carriers have to collect the tax from merchants before arriving in the U.S. using a third-party service preapproved by U.S. Customs and Border Protection. As of midday Friday, only a dozen service providers had been certified to collect and pay such duties. The search results do not specify the name of a third-party service provider certified by the U.S. Customs and Border Protection (CBP) to collect and pay fees related to the de minimis rule.
Larger businesses will have to alter their delivery strategy due to the elimination of the de minimis loophole. For instance, the brand Tapestry, which owns Coach, Kate Spade, and Stuart Weitzman, expects "profit headwinds" from tariffs, including the de minimis exemption. Similarly, Canadian yarn dyer Woolerton Estate Yarns will face an additional 33% cost due to the closing of the de minimis loophole.
Small and midsize companies may lack the resources to manage more complex customs filing processes and may abandon the market. This could potentially reduce consumer choice by eroding access to boutique items and niche products. Some shops might temporarily stop stocking goods coming from outside the U.S. due to the extra fees.
Online marketplaces like Shopify and Etsy have issued guidance for shoppers and sellers on how to adapt to the changes. However, consumers should not expect to get overnight, two-day, or even five-business-day shipping due to the changes. More than two-dozen countries have suspended some shipments to the U.S. until they sort out a system to collect the duties.
The Trump administration contends that closing the de minimis loophole will keep illicit drugs, such as fentanyl, from being mailed into the U.S. undetected. Ending the de minimis loophole is expected to add $10 billion a year in tariff revenues to the U.S. treasury and create thousands of jobs.
Some consumers are concerned about the affordability of certain products due to the additional duties and fees. The de minimis rule change could affect the delivery strategy of third-party logistics companies like LVK, which has warehouses in the U.S. and Canada. The U.S. dropped de minimis on goods out of mainland China and Hong Kong in May.
The closing of the de minimis loophole marks a significant shift in U.S. trade policy. Businesses and consumers are encouraged to stay informed and prepare for the changes ahead.
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