Mexico City, Mexico – The de minimis exemption, a provision that has allowed Chinese online shopping giants like Shein and Temu to ship millions of packages to the US duty-free, is set to be eliminated on May 2. This move could significantly impact not only these Chinese businesses but also online marketplaces like eBay and Etsy that facilitate US customers purchasing goods from China-based sellers.
President Trump had previously attempted to eliminate the de minimis provision for Chinese packages, but faced challenges with US Customs and Border Protection lacking resources to handle the influx of packages and ensure proper tariffs were paid. Despite this setback, Trump’s new executive order will push through with removing the duty-free exemption, giving CBP a brief window to prepare for the change.
Ram Ben Tzion, CEO of Publican, believes that Trump’s decision to eliminate de minimis could serve as a negotiating tool in trade talks with China. The potential impact of such a move on e-commerce could be enormous, reshaping the way Americans shop online and affecting major players in the industry.
Some tech companies, however, see potential opportunities in Trump’s trade policies. Defense contractor Palantir, for instance, has promoted an artificial intelligence service to help businesses navigate tariff-related decisions in light of the changing trade landscape. Similarly, Nuvocargo, a tech and logistics startup based in Mexico City, has seen increased demand for its services as importers seek assistance in navigating the new tariff landscape.
Jay Gerard, head of customs and logistics at Nuvocargo, acknowledges the challenges brought about by tariffs but also sees new business opportunities emerging. The temporary chaos caused by fluctuating tariffs has left importers and shippers in uncertainty, with sudden changes in fees impacting their bottom line.
The looming elimination of the de minimis exemption for Chinese packages marks a significant shift in US trade policy, with repercussions that could extend far beyond the online shopping sector. As businesses adapt to these changes, the landscape of e-commerce and international trade continues to evolve in response to shifting political realities.