This week, DHL announced the smart policy decision to halt its delivery of high-value packages to the United States —effective immediately. The company emphasized it will still keep delivering packages worth less than $800, but it would stop serving more valuable shipments. The Trump administration stripped that “de minimis” provision. This new requirement effectively removed the ability to send packages valued up to $2,500 into the U.S. with little documentation.
The increase to $800 in package value tightens the regulations even more. This new wrinkle has a huge effect on these fast-fashion retailers like Shein and low-cost behemoths like Temu. Because of these changes, these companies will now be subject to higher prices and a higher volume of costly customs clearances. The administration claims that many shippers in China have exploited the previous rule, prompting this clampdown aimed at “addressing the synthetic opioid supply chain.”
The change has contributed to the synthetic opioid crisis the White House recently laid at the feet of this very policy change. In response, officials have claimed that the global supply chain of synthetic opioids has been a key factor in the continuing crisis. In the face of these accusations, Beijing has rejected the charge and maintained that fentanyl is a “U.S. problem.” They point out that China has some of the world’s strictest drug policies, and that it actively tries to prevent the smuggling of synthetic opioids.
Without the “de minimis” rule in place, companies like Shein and Temu should expect to see a rise in operational costs. The higher costs may deter smaller businesses from engaging in U.S. trade, as they navigate the complexities of formal customs processes.
“The US is unreasonable, bullying and imposing tariffs abusively.” – Hongkong Post
Once again, the ramifications of this policy change stretch far beyond only delivery providers. As DHL adjusts its operations, it highlights a growing tension between U.S.-China trade relations amidst a backdrop of increasing scrutiny on shipping practices. Given these massive changes, it is too early to tell what their impacts on overall trade dynamics and U.S. consumer prices will be.
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