Trump pauses repeal of tariff on packages as they pile up at US customs

WASHINGTON/LONDON/LOS ANGELES — 

U.S. President Donald Trump paused his administration's repeal of duty-free attraction of low-cost packages from China connected Friday, giving the Commerce Department clip to marque the bid workable, aft the accelerated alteration sparked chaos for customs inspectors, postal and transportation services and online retailers.

The cancellation of de minimis means low-value e-commerce packages arriving successful the United States with goods from China indispensable usage the "formal entry" process that requires further accusation and duties earlier entering the state — a much time-consuming process.

The halt and restart of the United States Postal Service acceptance of those packages acceptable disconnected a swarm of disruptions that backed up Customs clearance for packages — adjacent those that had paid duties — astatine New York City's John F. Kennedy International Airport.

"Well, that was a amusive Tuesday done Friday, if you enactment successful planetary e-commerce," said Derek Lossing, CEO of e-commerce and planetary proviso concatenation steadfast Cirrus Global Advisors.

The change, implemented with conscionable 48 hours' notice, caused the USPS to temporarily halt accepting packages from China and Hong Kong earlier this week.

Popular online retailers, including Shein, Temu and Amazon.com's caller Haul service, alert packages nonstop from Chinese factories to U.S. shoppers and usage de minimis to support prices low. Those retailers did not instantly respond to requests for comment.

The Trump administration's revision to the bid was signed connected Wednesday and published today, a White House spokesperson said.

U.S. Customs and Border Protection, which has the occupation of screening e-commerce packages and collecting duties connected them, connected Thursday held a gathering with logistics professionals to sermon the presumption of much than 1 cardinal packages piling up astatine JFK Airport, according to a root acquainted with the meeting.

One logistics enforcement connected Friday told Reuters that customs had begun releasing packages it was holding astatine JFK, which has been taking successful astir 60 cardinal de minimis e-commerce packages annually.

Trump scrapped the duty-free attraction for Chinese goods with the stated purpose of stopping the travel of fentanyl and precursor chemicals into the United States.

White House officials person said Canada and Mexico are conduits for shipments of fentanyl and its precursor chemicals into the U.S. successful tiny packages that are not often inspected by customs agents. While fentanyl traffickers person exploited a U.S. commercialized law, nationalist information shows 0.2% of each fentanyl seized successful the U.S. comes from the Canadian border, portion the immense bulk originates from the confederate border.

Many shipping experts and attorneys warned that power would overwhelm customs inspections due to the fact that the bureau does not person systems and processes successful place. Its unit are besides stretched bladed due to the fact that they autumn nether the U.S. Department of Homeland Security, which besides is liable for borderline security.

Companies similar Shein and Temu had halted immoderate aerial cargo flights, invoking unit majeure to cancel agreements without penalties, said Kathy Liu, Director of Global income and marketing, Asia-focused freight forwarder Dimerco.

U.S. shoppers besides got deed with bills for duties connected purchases of dresses, tops and babe covering that antecedently were exempt. It is not instantly wide whether those consumers would beryllium eligible for refunds for immoderate duties paid.

"We're navigating these important changes to U.S. commercialized argumentation arsenic they come, arsenic champion we tin connected behalf of our clients," said Brian Bourke, planetary main commercialized serviceman for SEKO Logistics, which moves e-commerce packages targeted with caller duties.

Delivery firms UPS, FedEx and DHL besides grip those packages. Their representatives did not instantly remark connected the Trump administration's intermission connected work collection.