WHAT’S THE LATEST
On April 2, President Trump signed an Executive Order eliminating duty-free de minimis treatment for low-value imports from China and Hong Kong, effective May 2 at 12:01 a.m. ET.
WHAT WE KNOW
- Imported goods valued at $800 or less that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, payable under standard entry and payment procedures.
- Postal service shipments will now incur a tariff equivalent to 120% of the item’s value or a flat fee of $100 per package. This fee increases to $200 on June 1.
- Charges are already being applied in some instances, as orders placed now may not arrive until after the May 2 deadline.
- According to U.S. Customs and Border Protection, approximately 92% of all U.S. imports currently qualify under de minimis, signaling widespread impact across industries.
- Short-term price increases and supply chain disruptions are expected, particularly in the ecommerce sector.
WHAT'S NEXT?
Our team is currently working with dozens of retailers to future-proof their international ecommerce programs, while also supporting the launch of U.S.-based 3PL operations. We continue to actively monitor developments day by day, ensuring we have the latest information to guide our clients.
Take Action: Schedule a free hour of consulting with our team of experts today to explore how we can keep your supply chain moving smoothly.
If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.
