On August 29, 2025, the Trump administration formally ended the United States’ de minimis exemption — a nearly decade-old rule that allowed low-value shipments (under $800) to enter the country duty-free with minimal paperwork. What once fueled the rapid growth of cross-border e-commerce is now gone, and the effects will ripple across supply chains, retailers, and consumers.
What Was De Minimis?
The concept of de minimis — literally “about minimal things” — has long been used in customs law as a way to streamline trade by exempting low-value goods from duties and excessive paperwork.
In the U.S., the exemption was set at $200 until 2016, when Congress raised the threshold to $800.
This change coincided with the boom in e-commerce and transformed the way Americans shopped online. Platforms like Shein, Temu, and AliExpress leveraged the exemption to move millions of parcels daily directly to U.S. consumers at rock-bottom prices.
By 2024, de minimis shipments represented over 90% of all U.S. imports by entry count — more than 4 million packages every day.
While efficient, the rule also became a loophole for illicit goods, counterfeit items, and narcotics. Customs and Border Protection (CBP) reported that de minimis shipments accounted for 98% of drug seizures by number in 2024.
The End of Duty-Free Small Packages
With the exemption suspended, every package — no matter how small — is now subject to duty collection. Importers face two options during the six-month transition period:
Flat postal fees: $80 if the tariff rate is below 16%; $160 if between 16–25%; $200 if above 25%.
Percentage tariff rate: Applied according to the product’s country of origin.
After this window closes, only the tariff rate will apply.
This shift is expected to cost U.S. businesses and consumers an estimated $70+ billion annually. Large platforms like Amazon may be able to absorb some costs, but small and mid-sized businesses relying on cross-border fulfillment will feel immediate pressure. Consumers will likely see:
Higher prices on low-cost goods.
Slower delivery times, as postal services and express carriers adapt.
More cancellations, with some foreign retailers halting U.S. shipments until systems stabilize.
The Global Context
The U.S. is not alone in rethinking its de minimis policies — but thresholds vary widely across the world:
Canada: CAD $20 (about USD $15) for most imports; CAD $40–150 for U.S./Mexico under USMCA.
European Union: €150 (about USD $162).
United Kingdom: £135 (about USD $175).
Mexico: Eliminated de minimis for most shipments except those under USMCA, capped at $50.
Compared globally, the U.S. had one of the most generous thresholds — which explains why its sudden removal is such a shock to cross-border commerce.
What M.E. Dey Clients Should Do
It is incredibly important to talk to your customs broker about where your shipment is coming from and whether it is more fiscally responsible to pay the flat rate fee of the tariff rate of the country you are shipping from.
Though these flat rates only exist for the next six months, they may be a better option than going with the tariff. Some European postal services are behind or canceling shipments altogether to the U.S., so regularly check with your wholesaler about the item you are trying to import as well as with your customs broker about whether there will be issues with transport. M.E. Dey customs brokers are up-to-date on the latest laws and filings as well as shipping issues that might occur.