De Minimis Executive Order Risks Disrupting E-Commerce Without Fixing Enforcement Gaps, Says ITIF

WASHINGTON—In response to President Trump’s executive order suspending the de minimis exemption for commercial shipments globally, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Policy Analyst Eli Clemens:

The immediate effect of the executive order (EO) ending de minimis treatment for nearly all low-value global imports will be to slow and raise the cost of cross-border e-commerce, hurting American consumers and businesses. The EO ends duty-free de minimis treatment for nearly all low-value global imports, aiming to "put an end" to illicit drug trafficking and tariff evasion.

To be clear, the de minimis exception has long been exploited by bad actors like illicit drug traffickers and counterfeiters, as well as opportunistic actors like foreign vendors and Chinese e-commerce platforms that have built U.S. market strategies around minimal customs oversight. But this policy change alone will not stop those issues. Customs and Border Protection (CBP) is not operationally equipped to handle the surge in packages that will now require formal processing.

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. But in this case, the outcome hinges entirely on implementation. Without a rapid CBP modernization push that scales up AI-powered enforcement at ports, warehouses, and online, this policy may simply displace bad behavior rather than disrupt it. At best, it will close the loophole by raising costs and introducing friction for illicit actors. At worst, it will create a false sense of security while trafficking and customs evasion tactics evolve out of regulators' reach.

Contact: Nicole Hinojosa, [email protected]