President Trump has temporarily halted the repeal of the de minimis exemption, which allows duty-free treatment for low-cost packages from China, after the initial change caused significant disruptions at U.S. customs, postal services, and online retailers. This pause provides the Commerce Department time to develop a workable solution.
The cancellation of T86's "small-value tax exemption" for Chinese products is now a reality, and businesses must adapt to this change.
In the short term, companies will face higher logistics costs and may need to explore alternative customs clearance methods. Besides T86, options like T01 and T11 models are available, though they come with higher fees and extended processing times.
While the impact of T86's cancellation mainly affects drop-shipping and direct mail small parcels, businesses using semi-warehouse models or Amazon FBA will be less affected. To mitigate the challenges, adopting a "Sea/Air Freight + Overseas Warehousing + Distribution" fulfillment model can help reduce transportation costs. By shifting resources to fully-managed or semi-managed overseas warehouses, businesses can manage risks more effectively and streamline their supply chains.
As global trade continues to evolve, overseas warehousing is becoming an essential strategy for navigating the complexities of tariffs and logistics.