US President Trump recently announced the cancellation of the "small exemption" policy for cheap Chinese goods, intending to impose an additional 10% tariff on all Chinese imported goods. However, this policy was forced to be suspended in just a few days due to insufficient supporting measures, resulting in a pile of packages at major ports of entry in the United States, especially at New York's Kennedy International Airport. This incident exposed the drawbacks of hasty policy implementation and highlighted the vulnerability of the US logistics system in the face of sudden policy adjustments.

1. Policy background and original intention

Small exemption "is a trade rule that allows goods with a total value below $800 to enter the United States duty-free. In recent years, with the rise of e-commerce, the number of packages entering the United States through this channel has surged, reaching nearly 1.4 billion by 2023, of which about 60% come from China. The Trump administration believes that this policy has led to a large number of Chinese goods entering the United States duty-free, which has harmed the interests of local enterprises. Therefore, it has decided to cancel the exemption and impose tariffs on Chinese goods.

2. The chaotic situation of policy implementation

However, the implementation of the policy did not go as smoothly as expected. The logistics system was caught off guard with only three days from announcement to implementation. Packages are piling up at ports of entry, especially at Kennedy Airport, forcing the government to temporarily suspend some of the bans on low value packages. Logistics experts point out that major carriers, e-commerce platforms, and the US Customs and Border Protection (CBP) are unable to adjust their operations in a short period of time, especially when millions of packages are already in transit.

3. The Challenge of the United States Postal Service

The United States Postal Service has become a major pain point in policy implementation. Although it only handles about 5% of small exemption packages, it lacks tariff assessment and processing capabilities. Unlike private courier companies, USPS does not have an internal customs clearance department and cannot effectively collect tariffs. Experts suggest that the US Postal Service may need to collaborate with customs brokerage firms or directly exempt from the new regulations, but this could lead to a surge in low value goods, further exacerbating CBP's screening pressure.

4. Long term impact and criticism of policies

Trump's policies have not only been questioned by the logistics industry, but also criticized by some members of Congress. Connecticut Democratic Congressman Rosa DeLauro pointed out that the policy lacks supporting infrastructure and is overly targeted at China, which may lead to companies shifting production to Vietnam, Thailand, and other places to avoid the ban. In addition, CBP is unable to cope with the surge in package screening demand due to a shortage of personnel.

Summary:

Trump's attempt to cancel the "small exemption" policy has been thrown into chaos due to insufficient supporting measures and unprepared logistics systems. This incident not only exposed the disconnect between policy-making and implementation, but also highlighted the vulnerability of the US import system in the face of sudden policy adjustments. In the future, whether it is restoring bans or adjusting policies, more thorough preparation and close cooperation with the private sector are needed to avoid triggering another logistics crisis. As experts have said, "In any case, chaos will abound