U.S. TARIFF ON CHINA AMENDED BY NEW EXECUTIVE ORDER
The latest U.S. Presidential Executive Order, signed on February 5, 2025, reinstates de minimis duty-free treatment for certain Chinese-origin goods impacted by the February 1, 2025, Executive Order on the Synthetic Opioid Supply Chain in the People’s Republic of China. This temporary policy shift allows eligible low-value shipments to continue entering the U.S. without tariffs—but only until the Secretary of Commerce determines that enforcement systems are in place to fully collect applicable duties.
WHAT DOES THIS NEW EXECUTIVE ORDER CHANGE FOR U.S. TARIFF ON CHINA?
The February 1, 2025, Executive Order previously revoked de minimis eligibility for covered Chinese-origin goods, requiring that all shipments—regardless of value—be subject to new tariff requirements.
The February 5, 2025, amendment reverses this policy, granting temporary de minimis eligibility under 19 U.S.C. 1321, with a critical caveat:
- De minimis remains in place for now, meaning shipments valued at $800 or less may continue to enter duty-free.
- The Secretary of Commerce will determine when CBP (U.S. Customs and Border Protection) has the necessary enforcement mechanisms to fully collect tariff revenue on these shipments.
- Once enforcement is deemed sufficient, all covered articles from China will lose de minimis status, and tariffs will apply to all shipments, regardless of value.
TEMPORARY DE MINIMIS REINSTATEMENT: IMPACT FOR IMPORTERS, RETAILERS, AND E-COMMERCE SHIPPERS
This decision provides short-term relief for importers, particularly e-commerce and direct-to-consumer (DTC) businesses that rely on de minimis provisions to mitigate customs costs. However, businesses should prepare for eventual tariff enforcement, which may eliminate duty-free treatment for affected Chinese-origin goods.
Key Takeaways: Amendment to U.S. Tariff on China
Temporary Cost Savings – Eligible low-value shipments from China continue to enter duty-free for now.
Future Tariff Exposure – Once de minimis is revoked, all shipments will be subject to full tariffs, increasing costs for importers.
E-Commerce Disruptions – Online retailers and fulfillment centers should prepare for potential customs clearance delays once formal entry requirements apply.
Compliance Burdens – If de minimis is eliminated, businesses must adjust documentation and import processes to comply with stricter CBP requirements.
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