The United States ended the duty-free shipping provision known as the de minimis exemption for low-value imports on Friday. The development follows an executive order signed by President Donald Trump last month, accelerating a rollback initially slated for 2026 under a federal tax and spending package.
From Friday, imports worth $800 (£592) or less will no longer qualify for duty-free entry and will be subject to stricter customs inspections, a change expected to impact millions of daily shipments.
The de minimis rule, established in 1938, was initially intended to reduce the administrative hassle of collecting minimal import duties. It permitted goods below a specific value, originally $200, later increased to $800, to enter the U.S. without incurring duties. The exemption significantly contributed to the rise of global e-commerce, particularly benefiting Chinese retailers like Shein and Temu, who used to deliver low-cost products directly to consumers without the need for local warehousing.
In May, Trump revoked the exemption for imports from China and Hong Kong, and on July 30, he extended the measure to all countries. He described the exemption as a ‘catastrophic loophole’ exploited to bypass tariffs and bring ‘unsafe or below-market’ goods to the U.S.
Last year, nearly 1.4 billion parcels valued at over $64 billion entered the United States duty-free under the provision. According to a 2023 House report, over 60% of these de minimis shipments in 2021 originated from China.
However, due to the minimal documentation required for such low-value packages compared to larger shipments, limited visibility into the exact origin and contents of the packages.
Small parcels will now undergo customs inspections and be subject to origin-based tariffs ranging from 10% to 50%.
The shift in policy has already caused major disruptions in global mail operations. Postal services in countries including Japan, Switzerland, Germany, France, the UK, Australia, and others have declared temporary suspensions on some shipments bound for the United States.
According to experts, Trump’s policy change is expected to impact small businesses the most, with consumers likely to face higher prices and reduced choices in the near term.
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