Effective today, the Trump administration eliminated the de minimis exemption. US importers must now pay taxes on their packages regardless of their overall cost.
For crypto, the end of duty-free imports will largely affect smaller businesses focused on hardware development and Bitcoin mining.
A Major Shift for E-Commerce
Today, the Trump administration ended duty-free imports of packages worth less than $800.
Known as the “de minimis” exemption, this rule will likely affect small- and medium-sized businesses that relied on this duty-free status to lower overall costs. In the following weeks, shoppers expect elevated prices and fewer market options.
The threshold enabled imports from major China-based e-commerce sites like Shein and Temu to do business in the United States.
These retailers relied on shipping a massive volume of low-cost packages directly to US consumers, bypassing tariffs and customs procedures.
In public statements, the Trump administration cited concerns that these companies exploit the exemption.
The White House also cited national security concerns, claiming foreign entities were abusing the loophole to ship illicit substances like fentanyl into the US.
Applied to crypto, eliminating the exemption introduces significant logistical and financial challenges for the hardware and mining sectors.
The Ripple Effects on Crypto and Hardware
Crypto industries specializing in cold wallets may be hardest hit by the elimination of the exemption. Since this type of crypto-related merchandise is manufactured internationally, shipments of any value will now be subject to duties and fees.
The decision could lead to a price increase for the end consumer, potentially dampening demand for these security products.
The crypto mining industry may also suffer from the spillover effects of this decision.
While large-scale mining operations typically import hardware in bulk that was already subject to tariffs, the de minimis exemption provided a path for smaller-scale or individual miners to import equipment.
China, in particular, is a dominant producer of ASIC hardware, a key component for Bitcoin mining.
The elimination of the exemption, paired with the US’s tariffs on Chinese imports, can provide elevated prices for the end consumer and potential disruption to the mining supply chains.
This makes it more expensive for American miners to acquire new equipment. The move could slow the industry’s growth in the US and shift mining operations to countries with more favorable import tariffs.
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Source: https://beincrypto.com/trump-eliminates-de-minimis-shipping-exemption-crypto-impacy/
