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Trump pauses repeal of duty-free imports from China tariff plan

The sudden shift, implemented with just 48 hours' notice, led to the US Postal Service temporarily stopping package acceptance from China and Hong Kong earlier this week.

Any new tariffs will add to the confusion and chaos over global trade Trump has created since he entered office. (File Photo)

US President Donald Trump on Friday temporarily halted his administration’s repeal of duty-free treatment for low-cost packages from China, allowing the Commerce Department time to adjust the order after the abrupt change disrupted customs inspections, postal services, and online retailers.

The repeal of the de minimis rule, which allowed low-value e-commerce packages to enter the US duty-free, meant that all such shipments from China now required the “formal entry” process. This process demands additional documentation and duty payments, significantly slowing clearance times.

An executive order, signed by Trump, said he would keep the provision until “adequate systems are in place to fully and expediently process and collect tariff revenue”.

The sudden shift, implemented with just 48 hours’ notice, led to the US Postal Service temporarily stopping package acceptance from China and Hong Kong earlier this week. The resulting backlog at JFK Airport saw even duty-paid packages delayed in customs clearance, news agency Reuters reported.

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Major online retailers like Shein, Temu, and Amazon’s Haul service, which rely on de minimis to keep costs low, did not immediately comment on the policy shift.

Meanwhile, US Customs and Border Protection held a meeting with logistics professionals on Thursday to address the backlog at JFK, where over a million packages had piled up. The airport processes around 60 million de minimis packages annually.

Trump initially justified scrapping duty-free treatment for Chinese goods as a measure to curb fentanyl trafficking into the US. While White House officials have pointed to Canada and Mexico as major conduits for fentanyl and its precursor chemicals, public data shows only 0.2% of seized fentanyl originates from the Canadian border, with the majority coming through the southern border. Trump placed a 10% tariff on all Chinese imports, which went into effect this week.

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The impact was felt by major retailers and consumers alike. Some companies, including Shein and Temu, halted air cargo flights, citing force majeure to cancel agreements without penalties. Meanwhile, US shoppers were unexpectedly hit with duty bills on purchases of clothing and other low-cost items that were previously exempt, Reuters said.

Any new tariffs will add to the confusion and chaos over global trade Trump has created since he entered office. Trump had originally planned to place 25% tariffs against Mexico and Canada on 1 February but ultimately halted both tariffs after negotiations with the country leaders. Those tariffs are now expected to go into effect 1 March.

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