On February 7, 2025, US President Donald Trump announced the suspension of tariffs on small packages from China, following a previous order that disrupted postal services. The sudden change left agencies scrambling to adapt, and the postal service briefly halted package acceptance from China before reversing the decision.
- Trump suspended tariffs on small packages.
- Postal service briefly halted package acceptance.
- Concerns over Shein and Temu packages.
- 10% border tax increase on China goods.
- Reciprocal tariffs planned for next week.
- De minimis exemption under re-evaluation.
The recent suspension of tariffs on small packages from China comes after President Trump’s initial order raised border taxes on goods from China by 10% on February 4. This unexpected move caused significant disruption within the US postal service, which temporarily ceased accepting packages from China. The postal service quickly reversed this decision, but the confusion raised concerns among consumers and businesses relying on low-value imports.
Many American consumers order goods from popular e-commerce platforms like Shein and Temu, which have thrived under the exemption for low-value packages. The exemption, known as de minimis, allows packages valued under $800 to enter the US without incurring tariffs. This threshold was raised from $200 to $800 in 2016 to facilitate trade, but the surge in low-value imports—growing from 140 million to over 1.3 billion packages in recent years—has led to increased scrutiny.
Trump’s revised order indicates that tariff-free treatment for these packages will remain until “adequate systems are in place to fully and expediently process and collect tariff revenue.” This decision reflects ongoing challenges faced by the administration, including legal hurdles related to other recent policy changes. Furthermore, Trump has indicated plans for reciprocal tariffs on various countries, aligning US tariffs with those imposed by other nations on American goods.
As the situation develops, the implications for US-China trade relations and the e-commerce landscape will be closely monitored. The administration’s approach to tariffs and trade policy continues to evolve amid ongoing discussions about competitiveness and regulatory challenges.
The suspension of tariffs on small packages from China marks a significant shift in trade policy, impacting consumers and businesses alike. As the administration works to establish a clear framework for processing tariffs, the future of low-value imports remains uncertain.
