\u201cChina is incredibly efficient at trying to bypass the U.S. system,\u201d he said.<\/p>\n
The latest change caused many countries to suspend some shipments into the United States<\/a> while leaving some U.S. customers facing surprise tariff bills<\/a>. Firms large and small that relied on e-commerce and drop-shipping strategies using foreign manufacturing have also been affected. Lululemon shares plunged this month after it reported its existing e-commerce strategy for many U.S. shipments was no longer viable<\/a> because of the exemption\u2019s closure. <\/p>\n But whatever impact closing the exemption may be having on U.S. shoppers must be weighed against the potential benefits, said Kim Glas, CEO of the National Council of Textile Organizations, the chief lobbying firm for the U.S. textile industry, <\/p>\n From 2019 to 2024, the U.S. textile industry\u2019s total employment fell by more than 18% amid the rise in overseas e-commerce businesses that were taking advantage of de minimis.<\/p>\n The explosion of de minimis shipping over the past decade did \u201csevere harm\u201d to U.S.-based clothing manufacturers and retailers, Glas said. Products shipped via de minimis have been more likely to be unsafe, as well as produced using forced labor or child labor, she said. <\/p>\n Officials from both the Biden and Trump administrations have also said the de minimis loophole has been used to facilitate the trade in illicit drugs, especially fentanyl and its precursor chemicals, which can be shipped in small quantities. <\/p>\n \u201cWhat is the true cost of not having domestic manufacturing to the tax base \u2014 and the cost of losing a human life?\u201d Glas said. \u201cI think the Trump administration should be praised for closing this dangerous loophole.\u201d<\/p>\n While U.S. production is expected to benefit from the change over time, the new rules have proven an immediate boon to the dozen or so businesses that U.S. Customs and Border Protection has designated as official \u201cqualified parties\u201d that can collect and process tariffs on behalf of the U.S. government. <\/p>\n Among the biggest beneficiaries has been Zonos, a Utah-based company founded in 2009. It has won contracts from the governments of Australia, Canada and the United Kingdom to come up with solutions to comply with the new requirements. More are on the way, founder and CEO Clint Reid said. <\/p>\n He told NBC News that growth has been \u201cnuts\u201d for the company since Trump announced the rule in July. Pre-existing relationships with governments had helped Zonos land the latest contracts. <\/p>\n In the case of Canada, he said, \u201cthey had us fly up to Ottawa, and there were 25 people in the room from Canada Post,\u201d Reid said, referring to the country\u2019s postal service. \u201cThey gave us 21 days.\u201d<\/p>\n The Zonos team, which employs about 100 workers around the globe, \u201cworked all day every day, including weekends, to make this happen in three weeks,\u201d he said. <\/p>\n The new rules have also supercharged inbound inquiries for New York-based customs processor BoxC Logistics, CEO Chad Schoefield said. <\/p>\n \u201cIt\u2019s been good for us, quite honestly,\u201d he said. \u201cA lot of posts around the world have reached out, and we\u2019ve been getting them set up.\u201d<\/p>\n U.S.-based warehousing groups are also seeing growth, especially ones operating \u201cfree trade zones,\u201d where duties aren\u2019t paid until goods are shipped to U.S. customers. <\/p>\n \u201cBefore, a company might have had the product manufactured in Vietnam or China and had it shipped directly to me in New York City,\u201d said Maggie Barnett, CEO of LVK Logistics, a shipping firm. \u201cNow they\u2019re going to bring it in via sea on a container ship and move it to a warehouse in Pennsylvania, and that warehouse will collect storage fees and then pick and pack and ship to the U.S. consumer.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump\u2019s move to place big tariffs on small-dollar items ordered from abroad has caused headaches for…\n","protected":false},"author":3,"featured_media":220162,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-220161","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115189882871924698","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/220161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=220161"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/220161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/220162"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=220161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=220161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=220161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"\/](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/1757603721474_now_mnn_august_cpi_report_250911_1920x1080-ff38lk.jpg\")
<\/p>\n