Upcoming Changes in U.S. Trade Policy: What to Expect

As Donald Trump’s inauguration approaches, significant trade policy shifts are on the horizon, directly impacting e-commerce businesses. One confirmed change is the end of duty-free imports from China under Section 321, which previously allowed shipments valued under $800 to bypass tariffs. This move will affect major e-commerce platforms like Shein and Temu, as well as companies using logistics hubs in Mexico or Canada to avoid tariffs. By early 2025, these cost-saving strategies will no longer be viable, forcing businesses to reassess their supply chains.

Another proposed change is a $2 per-package fee for imported goods, in addition to existing tariffs. This measure would apply to packages shipped directly from China or routed through neighboring countries. These adjustments, combined with the discontinuation of Section 321, will significantly raise costs for e-commerce brands. To adapt, businesses may need to consider alternatives like storing products in U.S.-based warehouses or shifting production to countries outside China.

Further trade policy changes are expected with Peter Navarro’s return as a senior trade adviser. Additionally, national security concerns could lead to the ban of platforms like Temu and Shein, similar to the ongoing TikTok restrictions. These developments underline the need for businesses to stay agile in an evolving trade environment.

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source: www.freightwaves.com