President Trump has issued an executive order suspending the de minimis exemption for commercial shipments worldwide. The de minimis rule previously allowed low-value imports to enter the United States duty-free, but under the new order, nearly all such imports will be subject to duties and formal customs processing.
The Information Technology and Innovation Foundation (ITIF), a policy think tank focused on science and technology, responded to this development. Policy Analyst Eli Clemens stated:
"The immediate effect of the executive order (EO) ending de minimis treatment for nearly all low-value global imports will be to slow and raise the cost of cross-border e-commerce, hurting American consumers and businesses. The EO ends duty-free de minimis treatment for nearly all low-value global imports, aiming to 'put an end' to illicit drug trafficking and tariff evasion.
To be clear, the de minimis exception has long been exploited by bad actors like illicit drug traffickers and counterfeiters, as well as opportunistic actors like foreign vendors and Chinese e-commerce platforms that have built U.S. market strategies around minimal customs oversight. But this policy change alone will not stop those issues. Customs and Border Protection (CBP) is not operationally equipped to handle the surge in packages that will now require formal processing.
Like tariffs, this EO is part of a new phase in trade policy where the Trump administration is willing to impose costs on American consumers and businesses with changing and contradicting strategic goals. But in this case, the outcome hinges entirely on implementation. Without a rapid CBP modernization push that scales up AI-powered enforcement at ports, warehouses, and online, this policy may simply displace bad behavior rather than disrupt it. At best, it will close the loophole by raising costs and introducing friction for illicit actors. At worst, it will create a false sense of security while trafficking and customs evasion tactics evolve out of regulators' reach."
The executive order aims to address concerns about illegal drug shipments and tariff evasion through small packages entering under lax oversight. However, ITIF warns that unless Customs and Border Protection modernizes its systems—potentially using artificial intelligence for enforcement—the new rules could overwhelm existing infrastructure without solving underlying problems.