US President Donald Trump has just signed an executive order imposing tariffs on imports from Canada, Mexico and China. At the same time, he has abolished the US$800 de minimis threshold, sowing confusion among those involved in international trade.
A respite for Canada and Mexico, but not for China:
- Tariffs on Canadian and Mexican products have finally been suspended for 30 days, offering some brief relief to North American businesses.
- China, on the other hand, is already subject to these new taxes, which apply to any product manufactured in that country, regardless of where it is exported.
Why are these measures a real turning point for businesses and international trade?
End of the de minimis threshold, which will mean higher costs for everyone. Without the US$800 threshold, even small consignments now have to pay high taxes.
In practical terms, this means:
- An additional 10% on all Chinese products.
- The return of previous customs duties, sometimes very high, which were avoided thanks to the de minimis exemption.
A direct impact on e-commerce and fast fashion:
Large online sales platforms such as Shein and Temu, which originated in China, took advantage of the de minimis exemption by sending small packages directly to American consumers. With the abolition of this rule, these players and their customers will suffer a significant financial impact.
- American ready-to-wear brands (fast fashion, department stores, discount chains) could recover market share lost to Chinese platforms.
- Importers will have to rethink their supply chain to anticipate cost increases and avoid unpleasant surprises.
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Source: ASD Group
