NEW YORK (CNN) – The Trump administration on Friday delayed the suspension of what is called De Minimis regulations. Sell everything from fast fashion to furniture.
According to the new executive action announced Friday, it will continue until “the right system is installed” and “the right system is installed.”
The long-standing suspension of De Minimis regulations would have had a disastrous effect on Chinese e-commerce sites such as Shein, Temu and Aliexpress.
The provisions are part of Trump’s announcement of a 10% full-scale tariff in China this week, a move that can restructure global trade along with retaliatory tariffs from China.
Chinese e-commerce sites are building a huge business model around this exemption. The relaxed restrictions and tax exemptions on cheap products have allowed over a billion packages to be poured at low cost prices for consumers looking to trade in household property clothing.
The delay was told CNN by Clark Packard, a researcher at the Libertarian Cato Institute.
Experts previously told CNN that the suspension would overwhelm US customs and border security. More than 80% of US e-commerce transport in 2022 were minimal imports, according to a Congressional investigation report.
“We’ll need more people on the ground,” Packard said. “The reality is that current customs and border security is not entitled or unable to handle this because of the amount of packages.
The executive order did not say how long the delay would last.
Packard said there is no estimate of how long it will take. Logistically, he said it would take at least a year to set up a fully functional system, but that delays could also be a trade negotiation tactic.
To avoid the disappearance of the exemption, businesses can expand their warehouses in the United States. Christopher Tan, professor of global supply chain management at the University of California, Los Angeles, previously told CNN.
They can ship large amounts through customs and then resettle the products throughout the US, but customers still have to pay import taxes.
