The Impact of De Minimis Changes on the Interior Design Industry

The recent closure of the de minimis exemption by the Trump administration has significantly affected the logistics of the interior design industry, particularly in Memphis, Tennessee. This change, which took effect in late August, mandates that all packages entering the U.S., regardless of value, undergo inspection and are subject to tariffs. Previously, packages valued under $800 could enter the country without scrutiny, allowing for a smoother import process.

Upholstery tariffs get the headlines. De minimis is the headache

The implementation of stricter labeling requirements for low-value shipments has led to widespread chaos within the logistics network. Importers are now required to provide detailed Harmonized Tariff Schedule (HTS) codes for their shipments, which has resulted in delays and confusion. For instance, a minor error in the HTS code can cause packages to be held up for further review, leading to significant delays in delivery. This has particularly impacted the import of fabric samples, which are often low-value items but now require extensive documentation.

Upholstery tariffs get the headlines. De minimis is the headache

Designers and fabric distributors have expressed frustration over the new regulations. Garrow Kedigian, a New York designer, recounted an experience where expedited shipping failed to deliver fabric samples on time due to customs delays. Similarly, Stephane Silverman, founder of fabric brand Castel, highlighted the absurdity of requiring extensive documentation for small fabric samples, which often cost more to process than the tariffs collected.

Upholstery tariffs get the headlines. De minimis is the headache

Fiona West, president of North America for Pierre Frey, noted that the rush to install new collections has been hampered by delays in Memphis, causing stress among industry professionals. Timothy Corrigan, another designer, remarked on the increased difficulty in sourcing products from abroad, suggesting that the new rules may lead to a less global design industry.

Upholstery tariffs get the headlines. De minimis is the headache

Critics argue that the elimination of the de minimis exemption has created unnecessary bureaucratic hurdles for the interior design sector. The requirement for detailed descriptions and HTS codes for low-value items has led to a backlog in customs processing. Many industry professionals feel that the changes were implemented without a systematic approach, resulting in confusion and inefficiency.

Upholstery tariffs get the headlines. De minimis is the headache

While the immediate impact of the de minimis changes has been disruptive, analysts predict that the shock to the logistics system may be temporary. Although costs associated with tariffs may persist, there is hope that the speed of global shipping will eventually improve. Until then, the interior design industry remains vigilant, closely monitoring the situation in Memphis as they navigate the complexities introduced by these new regulations.

Upholstery tariffs get the headlines. De minimis is the headache

“Then it gets caught into an administrative vortex. … Samples get held up for days—sometimes we send duplicates and the second shipment makes it through before the first one.” — Stephane Silverman, Founder of Castel

Upholstery tariffs get the headlines. De minimis is the headache

“You used to be able to get this through in 48 hours; now we preemptively track things, because everything is getting stopped even though all the appropriate paperwork is put in. We contact FedEx, four days later they ask for descriptions of everything, we have to go through each CFA … It can take hours. It’s a lot of work and a lot of time for really nothing. These are snippets of fabric.” — Stephane Silverman, Founder of Castel

Upholstery tariffs get the headlines. De minimis is the headache

“I had expedited FedEx shipping, but of course, it sat in customs for three days, so it arrived at the client’s house after the meeting, and then they got this bill for the customs and duties on the shipment for the samples. It’s a little ridiculous.” — Garrow Kedigian, New York Designer

Upholstery tariffs get the headlines. De minimis is the headache

“People have been really patient about tariffs and changes to the regulations, but I sense they’re starting to lose patience.” — Fiona West, President of North America for Pierre Frey

Upholstery tariffs get the headlines. De minimis is the headache

“We ordered a wastebasket from Europe. Whatever duty the shipper wanted was more than the cost of the product. So, we just had to say, ‘Keep it,’” — Timothy Corrigan, Designer

Upholstery tariffs get the headlines. De minimis is the headache