The Ecommerce Innovation Alliance (EIA) is closely monitoring recent developments out of the White House, specifically the two Executive Orders issued on April 2, 2025, that will undoubtedly have ramifications for the ecommerce sector. As an alliance dedicated to fostering a robust and consumer-friendly online marketplace, we believe it’s crucial for our members and the wider industry to understand the potential impacts of these presidential actions.

The first Executive Order, titled “Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People’s Republic of China as Applied to Low-Value Imports“, purports to target the ongoing crisis of synthetic opioids entering the United States, even though there’s very little evidence to suggest that low-value imports are the primary means through which fentanyl is entering the United States. While we at the EIA fully support efforts to combat the flow of illicit substances, this order is out of touch with the economic reality for ecommerce companies as it strips away the de minimis exemption under 19 U.S.C. 1321(a)(2)(C) for products originating from China (including Hong Kong) on May 2, 2025.

What does this mean for ecommerce? As EIA explained in detailed comments filed recently with Customs and Border Protection, many low-value shipments (valued at or under $800) from China could enter the U.S. duty-free under the de minimis provision. This new order mandates that these shipments will now be subject to duties. For goods sent through the international postal network, transportation carriers will be responsible for collecting and remitting duties, with options for either a 30 percent ad valorem duty or a specific duty that increases from $25 to $50 per postal item over the month of May 2025. Non-postal shipments will need to be formally entered through the Automated Commercial Environment (ACE) with all applicable duties paid. Furthermore, carriers transporting these postal items will be required to have an international carrier bond.

The second Executive Order, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits“, takes a much broader approach. Citing national security and economic concerns related to trade imbalances, this order declares a national emergency. It establishes a policy of imposing an additional ad valorem duty on nearly all imports, starting at 10 percent on April 5, 2025, and increasing for specific trading partners listed in an annex starting April 9, 2025.

While there are exemptions for certain categories of goods like steel, aluminum, automobiles, pharmaceuticals, and some others, the potential impact on the vast majority of imported goods, including those frequently sold through ecommerce platforms, is substantial. Importantly, the order states that duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) will remain available for these goods only until the Secretary of Commerce determines that adequate systems are in place to collect the relevant duty revenue. After such notification, this key exemption will no longer apply.

For the ecommerce sector, these two presidential actions present a complex and potentially challenging landscape.

• Increased Costs for Businesses: The elimination of de minimis for many goods from China and the impending removal of de minimis due to the reciprocal tariff policy will likely lead to significant increases in the cost of goods sold for numerous ecommerce businesses. As the EIA has previously highlighted, these added expenses can be particularly burdensome for small and mid-sized enterprises operating on tight margins.
• Higher Prices for Consumers: Ultimately, the increased costs faced by businesses are likely to be passed on to American consumers in the form of higher prices. This could reduce consumer purchasing power and negatively impact the overall ecommerce market. The EIA is particularly concerned about the disproportionate impact on lower-income households who rely on affordable imported goods.
• Increased Administrative Burden: The new regulations, particularly those related to low-value imports from China, will likely increase administrative complexities for both businesses and carriers. Navigating new duty collection processes and potential formal entry requirements can divert valuable resources away from core business activities.
• Supply Chain Disruptions: The changes in tariff structures may necessitate adjustments to existing supply chains. As the EIA has noted, quickly pivoting to domestic manufacturing is often not a viable option for many small and mid-sized ecommerce businesses due to cost and labor constraints.

The EIA will continue to monitor these Executive Orders and their impact on our members and the broader ecommerce ecosystem. We remain committed to advocating for policies that support innovation, facilitate trade, and protect consumers. We believe that a targeted and measured approach, as we outlined in our recent comments regarding low-value shipments, is crucial to addressing legitimate concerns without causing widespread economic disruption and hindering the growth of the dynamic ecommerce sector. We will urge policymakers to consider the significant role de minimis has played in fostering a strong ecommerce environment and to carefully evaluate the potential consequences of its broad elimination.