The U.S. government has officially ended the De Minimis Exemption, which allowed duty-free imports of packages valued under $800. This change took effect one month after President Donald Trump announced it on July 30. The end of this exemption will affect many U.S. shoppers and online retailers by increasing the cost of imported goods.
The De Minimis Exemption had fueled a rapid increase in cross-border e-commerce. It allowed packages valued below $800 to enter the U.S. without customs duties. This helped online shoppers buy low-cost items from overseas sellers, especially from China, without extra fees.
According to U.S. government data, around 1.36 billion shipments entered the U.S. under the De Minimis Exemption in fiscal 2024. About 73% of these shipments came from China, with other significant sources including Canada, Mexico, and the United Kingdom. The removal of this exemption for China and Hong Kong in May caused shipment volumes to drop by nearly one-third.
The government cited security concerns and unfair competition as reasons for ending the exemption. Officials say the rule made it easier for traffickers to send illegal substances like fentanyl into the U.S. Additionally, many U.S. retailers argued that foreign sellers gained an unfair advantage by avoiding tariffs.
The change has also disrupted postal and courier services globally. Many have had to pause shipments to the U.S. as they adjust to new duties collection processes. Sellers now face increased paperwork requirements, including detailed customs information.
Large e-commerce companies like Shein and Temu have adjusted prices to absorb the new tariffs. However, small businesses find it harder to manage these costs. Platforms like eBay and Etsy advise sellers to inform customers about upcoming price increases.
Overall, the end of the De Minimis Exemption means higher prices for many imported goods. U.S. consumers should expect changes in the cost and availability of international online purchases.
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