US President Trump’s Executive Order: Another Setback for the E – commerce Industry

US President Donald Trump has once again dealt a significant blow to the beleaguered e – commerce industry. The industry has been reeling from the far – reaching tariffs announced by Trump in the spring. On Wednesday, Trump signed an executive order that broadens the impact of those tariffs, thereby increasing the cost for Americans to purchase foreign products on platforms such as eBay, Etsy, and Amazon.

Elimination of the “De Minimis” Provision

The order abolishes the so – called “de minimis” provision. This long – standing policy permitted individuals in the US to import packages valued at less than $800 from any location globally without incurring duties. As per a fact sheet released by the White House, these packages will now be subject to the same country – specific tariffs as larger shipments.

Trump had already removed the de minimis exemption for Chinese goods earlier this year. The president’s new executive order extends this removal to all other countries, effective August 29. Until then, experts suggest that numerous foreign sellers and American companies with offshore warehouses will be in a rush to get their goods into the US. Aaron Rubin, the CEO of the logistics firm ShipHero, stated in a social media post, “Expect a flurry of sales as brands attempt to liquidate their overseas inventory in the next 30 days.”

Temporary Exceptions for International Postal Shipments

There are certain temporary exceptions for packages routed through international postal networks, i.e., shipments not handled by private companies like DHL or FedEx. Due to the difficulty for customs officials to promptly calculate the value of these packages, they will be subject to a fixed tariff rate ranging from $80 to $200 per item, at least for the time being. The Trump administration has indicated that this special tariff rule will expire after six months. Subsequently, all shipments will be taxed according to the country – specific tariffs that Trump has initiated negotiations on with individual countries, such as Japan.

Origins and Impact of the De Minimis Exemption

The de minimis exemption was initially formulated to enable US travelers to bring back gifts and items purchased abroad for personal use without paying duties. However, with the boom of the e – commerce industry, this rule also made it more cost – effective and efficient for Americans to order goods online from around the world. Until this year, overseas sellers frequently exploited this trade loophole to send packages directly to US consumers’ doorsteps at a very low cost. Data from US Customs and Border Protection shows that, on average, the US receives 4 million de minimis shipments daily.

Some of the major beneficiaries of this policy were Chinese e – commerce platforms like Shein and Temu. These platforms systematically utilized de minimis shipments to maintain low prices and build supply chains capable of responding to consumer demand in real – time. They were the first to be affected by Trump’s tariffs when he issued an executive order in April, removing the exemption for packages from China.

When the duty – free exemption ended, some analysts feared it would pose an existential threat to Chinese e – commerce sites. Nevertheless, they have adapted and largely resumed normal operations. Temu and Shein did, however, increase the prices of many products to cover the additional costs of the new tariffs.

Litigation and the New Executive Order’s Impact

Earlier this week, a federal trade court allowed Trump’s order eliminating the de minimis exemption for Chinese goods to remain in force pending the outcome of ongoing litigation. The Trump administration is currently involved in a number of lawsuits regarding its tariff policies, which companies claim are illegal and detrimental to American businesses.

Trump’s new executive order is likely to have a more profound impact on non – Chinese e – commerce sellers compared to previous measures. It could particularly harm small business owners who rely on the de minimis provision to reduce shipping costs and maintain competitive pricing.

The fact sheet indicates that countries which “historically have not been the primary source of de minimis abuse” have been relying more on the exemption this year. During the fiscal year 2025 that ended in June, the US received 309 million de minimis shipments from these countries, as opposed to 115 million in 2024, according to the fact sheet. The document did not specify which nations these figures encompassed.

Trump gave many countries until August 1 to negotiate new trade agreements with the US before the tariffs announced in April would come into effect. So far, the administration has only publicly reached deals with a few major partners, including the European Union and Japan. Other nations are still bearing the full impact of the tariffs, including those on small packages shipped from their countries.