Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries

This executive order eliminates duty-free entry for all low-value imports to combat illicit drug flows and trade deficits while bolstering national security.

Positively Impacted Sectors

• Domestic Traditional Retailers: Reduced price competition from ultra-cheap, direct-to-consumer foreign goods.
• U.S. Manufacturing: Higher barriers for foreign small-batch goods level the playing field for domestic production.
• Customs Brokerage and Compliance Firms: Increased demand for professional services to process duties and paperwork for millions of previously exempt parcels.
• Industrial Real Estate: Encourages companies to store inventory in U.S. warehouses rather than shipping individual items from abroad.

Negatively Impacted Sectors

• International E-commerce Platforms: Massive cost increases for companies relying on the de minimis loophole for direct-to-consumer shipping.
• Global Express Couriers and Air Freight: Decreased shipping volumes for small parcels and increased administrative delays at borders.
• Discount Consumer Discretionary: Higher end-user prices for inexpensive imported goods likely to reduce overall sales volume.
• Digital Advertising: Potential reduction in marketing spend from foreign e-commerce entities facing squeezed profit margins.