US De Minimis Rule Keeps Duty-Free Imports for Canada, Mexico

The US de minimis exemption, which allows imports valued under US$800 to enter duty-free, will remain in effect for products from Canada and Mexico, despite new tariffs set to take effect on Tuesday.

Initially scheduled to end under the tariff orders, President Donald Trump amended the orders on Sunday to extend the duty-free treatment until “adequate systems are in place” to efficiently process and collect tariff revenue. The exemption will continue until the Commerce Secretary notifies the president that these requirements have been fulfilled.

This approach aligns with how the United States previously handled de minimis rules for imports from China. In February, the exemption was temporarily removed under an order imposing an additional 10% tariff on Chinese goods but was later reinstated until proper collection systems were implemented.

The decision provides temporary relief for cross-border e-commerce shipments from Canada and Mexico, reducing immediate cost increases for importers of low-value goods. However, experts warn that the exemption’s long-term future remains uncertain, advising businesses to prepare for potential changes in trade policy, according to Retail Drive.

“In certain areas, there may be people looking at near-sourcing some of those goods and exploring alternate suppliers,” said Scott Sangster, general manager of global logistics service providers, Descartes Systems Group, in an interview with Supply Chain Dive last week.