February 10, 2025 — In China-related news this week, CNN reporter Elisabeth Buchwald asked: “Is something you ordered taking a while to be delivered? Tariffs may be to blame.”
She explained: “The recent tariffs set in motion by the Trump administration could be to blame for delayed packages coming from China on sites like Amazon Shein and Temu. Last week, Trump levied a new 10% tariff on all goods coming to the US from China. Initially, the tariffs were also applied to packages imported from China worth less than $800 that were previously exempt. However, the Trump administration suspended that provision temporarily, throwing the US Postal Service into chaos as it was forced to halt all package deliveries from China and Hong Kong to comply with the order. Experts say some packages have been caught up in the confusion and could still be sitting with customs where they were set to undergo a more thorough inspection.” Read more here.
From my perspective as an IP attorney and author of “The China Connection,” and the “China Factor:”
A little background: U.S. consumers and foreign online retailers reap the benefits of low-value shipments entering the U.S. market without paying import duties. Shipments valued at under $800 (often referred to as de minimis because of low value or of little significance) enter the U.S. without being assessed duties. Recently, the Trump Administration issued an executive order eliminating this duty-free status for de minimis shipments from China. That order, however, was reversed within days to allow these shipments to continue to enter the U.S. market duty-free. To be fair, opposition to these de minimis duty-free shipments prompted a rethink of the provision during the previous administration.
Up until now: Consumers have had ease of mind by shopping, ordering and processing payment online and expecting items to arrive within days. There was no reason to consider paying the federal government any additional amount. On the flip side, the U.S. Government sees these de minimis shipments as posing threats to U.S. consumers and avoiding the payment of duty (i.e., loss of revenue to the government).
Looking forward: Delving into the magnitude of these de minimis shipments and their potential impact on consumers and government revenues, their impact is no trivial matter. The Congressional Research Service reported that in 2023, Chinese exports to the U.S. that qualified for the de minimis duty-free treatment were valued at $18.4 billion. Learn more here: crsreports.congress.gov
Customs and Border Protection’s (CBP) webpage warns consumers to beware of what they buy and from whom they buy. CBP reports that four million de minimis packages arrive in the U.S. every day. Buyer Beware: Bad Actors Exploit De Minimis Shipments | U.S. Customs and Border Protection. The reason for CBP’s warning to consumers is because of the agency’s inability to examine all these shipments and the individual products in millions of packages. For 2024, CBP reported that the total number of de minimis shipments was 1.36 billion with a total value of over $64 billion. These numbers are not China specific.
Given the massive numbers of low value shipments arriving daily at U.S. international mail facilities and expedited cargo facilities, it becomes clear that those responsible for examining goods arriving in the U.S. are unable to sift through packages in an attempt to identify goods that might pose harm or risk to consumers. Moreover, these de minimis shipments are not required to have the kind of detailed documentation that is required of higher value imported goods. As a result, exporters with ill-intent are able to exploit this system by shipping questionable, substandard or illegal goods to the U.S.
Forecast for China: As China continues to be home to a significant number of manufacturing sites and ecommerce platforms, it is likely to be the predominant source of goods being made, bought and exported to the U.S. for the foreseeable future. That being the case, the Trump Administration will take steps to eliminate the duty-free status that these low value shipments currently enjoy. The only question is when will the U.S. develop the procedures necessary to begin imposing duties on these shipments and how will consumers be notified that they will be responsible for paying the import duties.
Forecast for the U.S.: American consumers have become accustomed to the ease with which they can conduct their personal and commercial business. In the future, it may cost consumers more to buy their desired product and take longer for those products to be delivered. The government’s stated interest is to protect consumers and collect revenue. Change is inevitable. The only question is when the changes will take effect.
About the Author: Attorney Timothy Trainer worked in multiple federal government agencies and in the private sector. His non-traditional legal career included significant time focused on international trade issues. His work required extensive travel around the world, including dozens of trips to the Asia-Pacific region. His experiences led him to co-author a legal treatise for fifteen years, penning novels including “The China Connection,” and “Pendulum Over the Pacific,” and authored a non-fiction book “The Fortunate Son: Top, Through the Eyes of Others,” about men who served in Vietnam with his father. Learn more at TimothyTrainer.com.