While the 10 percent tariff has garnered tremendous attention, the real sea change in President Donald Trump’s Executive Order is the suspension of the de minimis loophole. This loophole has enabled e-commerce behemoths to evade American import taxation and consumer safety standards, giving them an unfair playing field against American businesses.

The de minimis repeal would not have simply added a predictable cost, as the tariff does; it would have forced these companies to comply with the same rules and regulations that American companies are subject to.

The de minimis exemption that allows goods valued under US$800 to enter the US without duties has accelerated billions of dollars in unregulated imports that have hurt American retailers and manufacturers. In 2023 alone, over one billion shipments — with a value of about US$54.5 billion — were processed via de minimis (US Customs and Border Protection).

The bigger competitive threat for American businesses isn’t a tariff; it’s unrestrained competition from companies that take advantage of regulatory gaps. As platforms like Shein and Temu circumvent tariffs and compliance obligations, they are undercutting US businesses and redirecting revenue away from American retailers, manufacturers, and logistics providers.

Reinstating de minimis — so that these platforms can still evade US consumer safety regulations — is a far bigger problem than a 10 percent tariff on Chinese goods. We realise that this puts a logistical burden on US Customs, and hope this is just a temporary rollback, as ethical businesses that support fair competition and consumer safety should. If it is serious about protecting American businesses and consumers, the de minimis repeal must be restored.”

Closing this loophole would create a level playing field, obligating these foreign platforms to play by the same rules that US businesses have followed, leading to fairer competition and increased consumer protection.