News / U-turn on de minimis ban, following 'processing issues', as trade war heats up

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White House-triggered whiplash has hit again with the news that a small but powerful sentence has been added to the de minimis executive order, pausing the ban. 

It now says that the ban on de minimis parcels from China will only come into effect “upon notification by the secretary of commerce to the president that adequate systems are in place to fully and expediently process and collect tariff revenue…”. 

The implication is that there have been some processing issues with the vast amounts of ecommerce coming into the US – some four million parcels a day – creating significant hurdles, overnight, to collecting tariffs and processing the flows. 

It is unclear how long this might take, but given what we know of the new US administration, the situation could change very quickly. 

However, as administrative cuts take place in the name of efficiencies, some observers have noted that the processes required to gather tariffs, check parcels and manage the flow could end up costing more than de minimis makes.  

Meanwhile, further announcements are expected today on tariffs, after the US president told reporters on the way to the Super Bowl this weekend that he would impose 25% tariffs on all steel and aluminium imports.

However, having already postponed Canadian and Mexican tariffs, and delaying the ending of de minimis, nothing is certain. 

Mr Trump has also upped his trade war game, saying he would announce new reciprocal tariffs targeting imports from a range of countries that impose tariffs on US imports.

Today sees Chinese tariffs come into effect, with controls on imports of US coal, oil, gas, agricultural machinery, large-engine cars, and metals needed for electric and military equipment. 

The president said the US would match those tariffs – “It’ll be great for everybody, including other countries,” he said. 

Not everyone agrees. A Chinese government spokesperson said: “There are no winners in a trade war or tariff battle. What is harmed are the interests of the people of both countries.”