Trump's order on low-value imports risks disrupting e-commerce: ITIF
The policy, aimed at curbing illicit drug trafficking and tariff evasion, eliminates duty-free treatment for most low-value shipments. ITIF policy analyst Eli Clemens said the change could overwhelm US Customs and Border Protection (CBP), which is not operationally equipped to handle the influx of packages requiring formal processing.
While noting the exemption has long been exploited by counterfeiters, traffickers, and foreign e-commerce platforms, ITIF cautioned that without swift CBP modernisation and AI-powered enforcement, the move risks merely shifting illicit activities rather than stopping them.
ITIF has warned that Trump's executive order ending the de minimis duty exemption for low-value global imports will slow cross-border e-commerce and raise costs for Americans. Aimed at curbing illicit trade, it could overwhelm US Customs without rapid modernisation. ITIF cautioned that without AI-powered enforcement, the policy may merely shift rather than stop illicit activities.
'Like tariffs, this EO is part of a new phase in trade policy where the Trump administration is willing to impose costs on American consumers and businesses with changing and contradicting strategic goals,' added Clemens.
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