Trump Delays De Minimis Tariff Ban to Avoid Customs Backlogs

When the Trump administration ended duty-free treatment for low-value shipments from China, the announcement came a little too quickly for U.S. Customs and Border Protection (CBP) to enforce the new regulation. The result? A suspension of the ban until the CBP has a system in place to process these shipments.

In other news, U.S. importers have repeatedly shifted cargo between coasts in the last few years to manage port congestion, labor disputes, and global disruptions. The ongoing trade policy changes are adding fuel to the fire as shippers continue to adjust to the new status quo.

Continue reading to find out more.

Trump Delays De Minimis Tariff Ban to Avoid Customs Backlogs

Earlier this month, President Trump issued an executive order ending duty-free status for low-value imports. However, the CBP lacked robust systems and infrastructure to efficiently process and collect tariffs on these shipments. Following this revelation, the White House moved to temporarily suspend the ban. 

A statement said that all de minimis shipments valued at $800 or less will remain exempt from tariffs until the secretary of commerce confirms that enforcement systems are ready. Unfortunately for shippers, the sudden policy shift caused problems, with packages piling up at U.S. airport facilities as businesses struggled to adjust. 

The CBP is responsible for implementing these changes alongside other agencies involved in import regulations. Following the initial ban, the U.S. Postal Service briefly halted incoming packages from China, but resumed processing after agreeing to collaborate with CBP on a new tariff collection system.

US Importers Shift Supply Chains Between Coasts Amid Trade Disruptions

Over the past few years, U.S. importers have repeatedly shifted cargo between the West and East coasts, usually in response to port disruptions, labor disputes, and global shipping challenges. Initially, bottlenecks at West Coast ports forced them to move cargo eastward. Then, concerns over labor strikes on the East and Gulf coasts brought imports back to the West. The Red Sea crisis also did not help.

During the pandemic, the Los Angeles and Long Beach ports lost about 20% of their import volumes as cargo moved to East Coast ports. Last year, imports at these ports rebounded by 22%, nearly matching record levels from 2021. At the same time, ports on the East Coast, including Savannah, saw shipment increases as companies positioned their goods closer to growing population centers. These constant shifts are the perfect examples of how retailers and manufacturers adjust their supply chains to avoid trade disruptions.

Retailers Expect Stronger Import Volumes Despite Tariff Uncertainty

U.S. retailers have raised their import forecasts for the next few months, showing confidence in cargo demand at ports despite new tariffs on China and the possibility of tariffs on Canada and Mexico. The latest Global Port Tracker (GPT) report from Hackett Associates and the National Retail Federation now forecasts a small 0.2% increase in imports for February, an improvement from last month’s projection of a 4.5% decline.

The outlook for March and April has also been upgraded, with expected year-over-year growth of 11.1% and 8.2%, respectively. The estimate for May was slightly lowered to 5.4%. Retailers have been adjusting their supply chain strategies to lessen the impact of tariffs, including bringing in goods earlier, though this has increased storage and logistics costs. January import numbers are still being finalized, but early estimates say 2.11 million twenty-foot equivalent units (TEUs) were handled, a 7.8% increase from the previous year but short of the expected 10% rise. December imports reached an estimated 2.14 million TEUs, marking the busiest December.

Big Changes Coming for LTL Trucking in 2025

The U.S. less-than-truckload (LTL) sector is set for a shake-up in 2025 as market conditions shift and major players make strategic moves. Industry analysts expect freight volumes to grow by 1.6%, breaking a two-year slump. Rates will likely rise as more carriers leave the market and mergers gain traction.

FedEx Freight’s decision to spin off into a separate company is expected to reshape competition. The carrier handles nearly twice as many daily shipments as its closest rival, making its repositioning a major industry event. Other LTL companies, including TFI International, are looking for acquisitions to strengthen their position. The fallout from Yellow Corp.’s exit continues to reshape the sector, with key players such as Saia, Estes Express, R+L Carriers, and XPO acquiring terminals to expand their networks.

Manufacturing Sees First Growth in Two Years as Demand Rises

U.S. manufacturing started the year stronger, with industry demand and production growing in January. The Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) hit 50.9%, signaling expansion after more than two years of contraction. Rising consumer demand pushed new orders to 55.1%, while production climbed to 52.5%. Supplier delivery times slowed, a sign that supply chains are tightening as order volumes increase.

Manufacturers are seeing stronger sales and adjusting their workforces accordingly. ISM respondents reported steady employment levels, while S&P Global’s PMI showed hiring growth at its fastest pace since mid-2024. Optimism has increased, with many citing the Trump administration’s pro-business stance as a key factor. However, the recent tariffs are adding uncertainties.

Run Better Logistics Operations With Wicker Parker Logistics

So much is at stake. Experts and industry leaders are unsure of the freight industry’s future direction. However, one thing is certain: Your shipments cannot wait. This is why partnering with a solid logistics partner to navigate the coming months is a no-brainer. 

Look no further than Wicker Park Logistics, a woman-owned logistics company and a WBENC-certified business that is changing the freight world’s narrative. Connect with us today.

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