President Donald Trump said February 7 he would maintain the duty-free exception for low-value packages coming from China until “adequate systems are in place to fully and expediently process and collect tariff revenue,” formalizing a temporary reprieve to retailers like Alibaba Group Holding Ltd. and JD.com Inc.

The move came after the United States Postal Service earlier this week paused — and then a day later resumed — shipments from China and Hong Kong as officials grappled with how to implement Trump’s new tariffs. 

As part of a new 10% tariff on China, on February 3 Trump revoked a “de minimis” rule that previously allowed small packages under $800 to enter the U.S. duty free. The exception enabled the rapid growth of online retailers like Shein and PDD Holdings Inc.’s Temu, which could ship low-cost goods directly to U.S. consumers without paying tariffs.

But the quick action immediately raised questions on how tariffs would be collected. 

Under the new order, the U.S. will maintain the de minimis exception until the secretary of Commerce notifies Trump that a system to impose the taxes are in place. The postal service said earlier this week it was working to create an efficient collective mechanism.

The number of de minimis packages coming into the U.S. has soared over the last decade and totaled nearly 1.4 billion shipments during the government’s 2024 fiscal year, according to U.S. Customs and Border Protection.