Caught in the middle: How the de minimis suspension punishes US territories

On February 20, 2026, President Donald J. Trump (R) issued Executive Order 14388, titled “Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries.” It explained that he still deems it necessary and appropriate to suspend duty-free de minimis treatment for all countries. This is a continuation of his Executive Order 14324, issued July 30, 2025, titled “Suspending Duty-Free De Minimis Treatment for All Countries.” 

This order eliminated de minimis (“of the smallest thing” in Latin) duty-free privileges, ending the duty-free exemption of shipments worth under $800. This change affects the roughly one billion packages annually received through the postal service, as well as goods that fliers import during air travel. As the United States depends heavily on small parcel imports, the suspension of de minimis treatment is reshaping local economies and consumer behavior. 

Furthermore, Trump issued a presidential proclamation in February of 2026 to impose a universal tariff on imports following the Supreme Court’s decision against the Trump administration’s use of the International Emergency Economic Powers Act for a similar tariff. Trump is not looking to Congress to act and is relying on existing authorities for his tariff agenda. 

Changes to the territorial exemption to the de minimis system

The US territories, especially Puerto Rico and Guam, previously benefited hugely from their previous de minimis exemption. It permitted shipments valued at $800 or less to enter the United States duty-free and enabled packages to ship at standard US rates. Individuals living in the US territories were easily able to import small packages from the US mainland and Asia without heavy customs, paperwork, or tariffs. 

However, in late August 2025, the de minimis exemption for US territories was suspended. This drove sharp cost increases for local businesses and households and delayed packages, including essential goods.

In response to this suspension, territorial delegates introduced HR 5960, the Territorial De Minimis Exemption Act,  in November 2025, urging the restoration of the de minimis exemption. Congressional Delegate Kimberlyn King-Hinds (R-Northern Mariana Islands) highlighted the importance of this bill.

“We are not foreign countries, but neither are we part of the customs territory,” she stated. “Our relationship is unique, and that is reflected in the laws that govern how our goods move through the American market.” 

This bill also included a new requirement that federal agencies must consult on the territorial effects of future trade or tariff changes. Therefore, changes to trade policy will not categorize US territories as recipients of rules designated for foreign countries. 

What does the future of the de minimis suspension look like for US territories?

On March 2, 2026, Governor Albert Bryan Jr. (D) of the United States Virgin Islands launched outreach efforts seeking to raise awareness of the high postal fees impacting the territory. He hopes to collect documentation of the local postal fees and related impacts tied to the suspension of the territories’ de minimis exemption. However, his recent advocacy for this issue is not new; Governor Bryan has been elevating the issue repeatedly since July. This included formal appeals from territorial governors to the President seeking a customs duty exemption. 

In this new attempt, Bryan highlights that he hopes to “meet this moment with facts and documentation that cannot be brushed aside. This is about fair treatment for the people of the Virgin Islands and relief that reflects our reality as an island community.” He urged communities to send submissions. Although the Supreme Court recently struck down certain tariffs imposed under emergency powers, the broader tariff framework and the suspension of the de minimis exemption remain in place, offering little relief to US territories.