The de minimis exemption will temporarily remain in place for products from Canada and Mexico even when U.S. tariffs on those countries take effect Tuesday.
The exemption, which allows U.S. imports under $800 to avoid added duties, was slated to end for products from Canada and Mexico as part of the tariff orders.
That plan changed when President Donald Trump amended the Canada and Mexico tariff orders Sunday. Both amendments say duty-free de minimis treatment is available until "adequate systems are in place" for efficient tariff revenue processing and collection from imports eligible for the exemption currently. Once the Commerce Secretary notifies the president that the requirements have been met, the de minimis exemption will cease for Canada and Mexico products.
The amendments mirror the U.S.'s handling of de minimis on goods originating from China. The exemption briefly went away in February as part of an order placing additional 10% tariffs on China, but it has since been reinstated until effective tariff collection systems are in place.
The changes offer cross-border e-commerce shippers a temporary reprieve from added duties on low-cost products from the U.S.'s top trading partners. But the de minimis exemption is still on the chopping block, and experts say importers need to find long-term solutions that minimize their exposure to a turbulent trade environment.
"In certain areas, there may be people that are looking at near sourcing some of those goods, and looking for possibly alternate suppliers," said Scott Sangster, general manager of global logistics service providers at Descartes Systems Group, in an interview with Supply Chain Dive last week.
