With the end of the “de minimis” exemption as of August 29, any international package valued at $800 or less now incurs U.S. import duties and fees, which means American shoppers can expect, among other things, higher prices, possible delays, or additional paperwork.
The end of a 90-year-old exemption
Since 1938, the de minimis rule–or, in Latin, “about the smallest things” allowed packages valued under $800 to enter duty-free and without customs formalities into the United States. Over time, increasing thresholds have made cross-border e-commerce explode, facilitating the cheap goods from places like Shein and Temu to arrive at American doorsteps tariff free.
On July 30, President Trump issued an executive order suspending the exemption for all countries, citing fentanyl trafficking and unfair competition. The suspension became effective nationwide on August 29, closing what the administration referred to as a “lethal loophole.”
What shoppers will pay: Two duty calculation methods
Under the Trump administration, carriers must collect duties either via ad valorem duty, a percentage of the country-of-origin’s tariff rate, which will become the sole calculation method after a six-month transition, or by a flat-rate duty that carriers may apply only until February 28, 2026, for packages processed through postal operators. The flat fees depend on the tariff rate category of the goods: $80 for those below 16% tariff rates, $100 for those between 16% and 25%, and $200 for parcels with tariff rates above 25%. After this transition period, all packages will default to ad valorem duties, so small shipments will be treated in the same way as bulk imports.
For example, goods imported from countries like the United Kingdom or Australia usually have a tariff rate of around 10%, making them subject to an $80 flat fee throughout the transition period. This is in contrast to countries like Vietnam, which mostly have tariff rates near 20%, so a $100 flat fee is applied under the temporary method. Meanwhile, high-tariff countries like India or Brazil impose rates around 50%, resulting in the maximum flat fee of $200 for parcels sent through public postal networks during this period of transitory effect.
Impact on consumer prices and variety
Economists have estimated an additional burden of $136 to the average American household each year as duties would start being charged on imports worth less than the threshold exemption. Low-value imports, which traditionally would have been exempt from duties, are now supposed to disproportionately disadvantage low-income and minority consumers who rely more on cheap imports. Direct cost passing on to shoppers will most likely occur, while increased administrative burdens on sellers may force certain niche or low-margin online retailers out of the U.S. market, leading to reduced product variety for consumers.
Possible delays and further documentation
The end of the exemption introduces some of the harshest customs requirements, including detailed documentation on country of origin, tariff classification, and declared value for every package. Many smaller sellers feeling out of their depth or foreign postal services unfamiliar with these regulations have temporarily halted shipments to the U.S., resulting in delays. Furthermore, the increased paperwork can add time to the processes and confusion for both exporters as well as U.S. consumers.
Ways shoppers can limit charges
To combat additional costs, consumers can combine smaller orders into one larger shipment, sharing duties more efficiently. Some online sellers are building warehouses across the country to import goods in bulk-still subject to duties but avoiding parcel-level administration fees. Additionally, more platforms are including duties in their pricing, allowing buyers to have their costs upfront. Gifts worth below $100 remain duty-free, but buyers have to document these shipments well to prove their status.
Closing the de minimis loophole may endeavor to protect domestic manufacturers while cutting illicit present shipments, yet this is a drastic change for consumers who are accustomed to uninterrupted importation of cheap goods and services. Ultimately, adaptation over time will turn out eventualities such as domestic fulfillment centers, changes in e-commerce business-models, and clearer pricing, making the response easier. Meanwhile, American consumers should prepare for soaring prices, longer delivery times, and more tangled customs procedures when making purchases abroad.
