In a bold move, the Trump administration has decided to impose new tariffs on low-value international shipments entering the United States. These so-called "de minimis" imports, which are valued at $800 or less, have historically been exempt from U.S. tariffs. However, in early February, former President Donald Trump announced that the United States would begin collecting tariffs on these small-scale shipments. The announcement came despite the federal government not yet having the means to collect the fees effectively.
The U.S. Customs and Border Protection (CBP) is currently working to establish a system that can efficiently collect these tariffs. According to a CBP spokeswoman, the agency is making strides to implement the necessary infrastructure. Last year, the United States accepted over 1.3 billion overseas shipments that qualified for de minimis tariff exemptions, highlighting the significant impact this policy change could have.
Historically, de minimis imports have been seen as low-risk and cost-efficient, often exempt from tariffs due to their minimal value and person-to-person nature. However, Trump's decision to levy these shipments underscores his administration's broader strategy of wielding extraordinary presidential power over global commerce. The imposition of massive new tariffs on imports from Canada, China, and Mexico serves as a stark reminder of this influence.
Nicole Bivens Collinson, an expert in trade policy, emphasizes the importance of effective policy implementation.
"Anyone can develop a good policy, but whether that policy can actually be effectuated is critical," – Nicole Bivens Collinson
Collinson likened the situation to an overlooked tip on an Uber bill, illustrating the complexities of retroactively applying tariffs.
"It's like when you get an Uber bill and you forgot to tip, and add it on later," – Nicole Bivens Collinson
The implementation challenge is not just theoretical. Federal personnel and bandwidth are stretched thin, as pointed out by Anthony.
"Part of the challenge is [federal] personnel and bandwidth," – Anthony
The Trump administration has since issued an amendment to the China order, delaying the collection of tariffs on de minimis imports until adequate systems are in place. This decision underscores the logistical hurdles facing U.S. Customs and Border Protection, which may lack the staff or resources to handle the increased volume of shipments and packages.
Daniel Anthony highlighted the binary nature of tariff imposition, pointing out the straightforward yet profound impact of such policies.
"From a technical standpoint, the imposition of the tariffs is basically a light switch. They're on or they're off," – Daniel Anthony
In response to these developments, the U.S. Postal Service has suspended all parcel delivery services from China and Hong Kong indefinitely due to the tariffs. Meanwhile, similar waivers have been established for Canada and Mexico, postponing the new 25% tariffs on their imports.
The economic ramifications of these tariffs are significant. The Tax Policy Center estimates that Trump's tariffs on Mexico and Canada alone could cost the average U.S. household an additional $930 annually by 2026. With $2.2 trillion worth of trade accepted from Canada, China, and Mexico in 2024, according to federal census data, the stakes are undeniably high.
Collinson also acknowledged the existing infrastructure for normal shipments entering the country, suggesting that adapting this framework for de minimis imports could be a viable solution.
"There's a whole infrastructure system set up for normal shipments that come in to the country," – Nicole Bivens Collinson