U.S. Imports Face a Major Shift: The End of the $800 De Minimis Rule
Heads up, everyone who shops from international retailers or runs a business that imports goods into the United States. A long-standing and crucial trade rule has been suspended, and the impact will be felt by e-commerce businesses, shippers, and consumers alike.
As of Friday, August 29, 2025, the U.S. has officially suspended the $800 de minimis duty-free threshold for international shipments. This is a significant change, marking the end of a policy that has allowed millions of low-value packages to enter the country without being subject to customs duties and taxes.
What Does This Mean for You?
For years, if an international shipment to the U.S. was valued at $800 or less, it was typically exempt from duties, taxes, and extensive customs paperwork. This exemption fueled the growth of global e-commerce, making it easy and affordable to order directly from foreign sellers.
Now, that has changed for nearly all shipments. A presidential executive order signed on July 30, 2025, ended this exemption for goods from all countries. Shipments that would have previously qualified for duty-free entry are now subject to all applicable duties, taxes, and fees. The suspension had already been implemented for goods from China and Hong Kong in May 2025.
Why Did This Happen?
U.S. Customs and Border Protection (CBP) and the administration have cited several reasons for this move, which they say addresses national security and economic concerns:
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Combating Tariff Evasion: The de minimis rule was increasingly used by foreign companies to bypass U.S. tariffs. In fiscal year 2024, the volume of packages entering the U.S. under this rule soared to 1.36 billion, with a majority of these shipments originating from China and Hong Kong.
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Addressing Security Risks: The sheer volume of low-value packages made it challenging for customs officials to effectively screen for illicit goods, including narcotics like fentanyl.
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Leveling the Playing Field: The policy aims to create a more equitable trading environment for domestic businesses that have had to compete against foreign companies benefiting from the duty-free loophole.
Who Will Be Most Affected?
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Online Shoppers: If you regularly purchase from international e-commerce platforms like Temu or Shein, or smaller independent sellers abroad, you should expect to see the final cost of your orders increase due to added duties and taxes.
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Small Businesses and E-commerce Sellers: Businesses that rely on importing goods from international suppliers will likely face higher costs and more complex customs procedures. Some small businesses have already expressed concern that the new costs could make them uncompetitive.
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Shipping and Postal Services: Carriers are now responsible for collecting duties and filing the necessary customs documentation for each low-value shipment. This has led to widespread confusion and disruption. Many international postal services, including those in Europe, Australia, and Asia, have temporarily suspended shipments to the U.S. as they work to adapt to the new regulations.
What are the Exceptions?
A few key exceptions remain:
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Personal Gifts: Bona fide gifts between individuals valued under $100 are still generally exempt.
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Traveler Items: Personal items brought into the country by a traveler, valued up to $200, remain exempt.
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