While the 10 percent tariff has garnered significant attention, the real change in the Executive Order lies in the suspension of the de minimis loophole. This loophole has allowed e-commerce giants to bypass American import taxes and consumer safety standards, creating an uneven playing field for American businesses.

The de minimis exemption, which permits goods valued under US$800 to enter the US without duties, has led to billions of dollars in unregulated imports that harm American retailers and manufacturers. In 2023 alone, over one billion shipments—valued at approximately US$54.5 billion—were processed through de minimis, according to US Customs and Border Protection.

Reinstating de minimis—thus allowing these platforms to continue evading US consumer safety regulations—presents a far greater problem than the 10 percent tariff on Chinese goods.

This situation places a logistical burden on US Customs, and it’s hoped that this is merely a temporary rollback. Ethical businesses that support fair competition and consumer safety would benefit from the closure of this loophole.

Closing this loophole would level the playing field, requiring foreign platforms to adhere to the same rules as US businesses. This would promote fairer competition and enhanced consumer protection.