US President Donald Trump has signed executive orders implementing tariffs on imports from Canada and Mexico, with China-based imports facing an additional 10% duty. The de minimis exemption, which allows shipments under $800 to avoid duties, is now at risk for these countries. This change will significantly impact e-commerce supply chains that rely on low-cost shipping.
The tariffs on China took effect Tuesday, eliminating the de minimis eligibility for most products. Canada and Mexico have delayed their duty increases until March. The de minimis exemption has been a critical tool in reducing cross-border shipping costs, but it’s being targeted as part of Trump’s trade actions.
E-commerce brands that rely on this exemption will need to adapt their order fulfillment and shipping processes. China remains a key manufacturing hub for products eligible for the de minimis treatment, while Canada and Mexico are major trading partners with many warehouses providing cross-border fulfillment into the US.
To mitigate the impact, companies may pass added duties onto consumers or explore alternative production and warehousing options in the US. Experts warn of potential freight delays as shippers navigate new requirements for shipments previously exempt from duties.
Key steps to minimize delays include: (1) determining your importer of record, (2) finding a customs broker and obtaining a surety bond, (3) calculating estimated duties on products, and (4) ensuring invoices include necessary information for formal entry processes. By taking these precautions, companies can navigate the changes brought about by Trump’s tariffs and minimize disruptions to their supply chains.
Source: https://www.supplychaindive.com/news/trump-tariff-de-minimis-exemption-section-321/739083