WASHINGTON (BRAIN) — President Donald Trump on Friday reversed the step he took on Monday to close the de minimis loophole, which allows packages valued at less than $800 to enter the U.S. duty free.
An executive order said the loophole will be closed again when Secretary of Commerce notifies the president that "adequate systems are in place to fully and expediently process and collect tariff revenue applicable pursuant to subsection (a) of this section for covered articles otherwise eligible for de minimis treatment.”
Trump announced the de minimis reform last weekend, to take effect Tuesday morning, along with new tariffs on Chinese, Canadian and Mexican goods entering the U.S. On Monday he delayed the Mexico and Canada actions by 30 days following discussions with the leaders of those countries.
Members of the bike industry have long lobbied to close the loophole because it allows overseas e-commerce vendors to undersell domestic retailers whose goods are subject to duties and taxes. In recent years the industry has also opposed de minimis on safety grounds because of unregulated low-cost e-bike batteries that can be shipped from China or elsewhere.
