For years, American shoppers have enjoyed the ability to buy low-cost products online from overseas retailers without paying hefty tariffs. But that era is about to end. Starting Friday, the de minimis shipping exemption which allows packages valued at $800 or less to enter the United States duty-free will no longer apply.
The policy change, enacted through an executive order signed by President Donald Trump earlier this year, could have major consequences for consumers, small businesses, and international retailers. From higher prices to delivery delays, here’s what you need to know.
What Are De Minimis Rules?
The de minimis exemption allows shipments below a certain value threshold to bypass tariffs and customs duties. In the U.S., that threshold has been set at $800, one of the highest in the world.
This meant that shoppers ordering clothes, cosmetics, gadgets, or other small items from overseas retailers like Shein, Temu, or AliExpress could avoid paying import tariffs often making international e-commerce much cheaper than buying similar goods domestically.
According to U.S. Customs and Border Protection (CBP), over 90% of all cargo entering the country has fallen under the de minimis exemption. That made it a cornerstone of America’s booming cross-border shopping habits.
Why Is It Changing Now?
The Trump administration first ended the exemption for Chinese imports on May 2, calling the policy a loophole that encouraged tariff evasion and even facilitated the flow of illegal goods such as opioids. The White House described de minimis as a “catastrophic loophole” undermining fair trade and domestic manufacturing.
While the Biden administration had considered tightening the exemption, no major reforms took place until Trump returned to office. Now, the policy will end for the rest of the world, extending tariffs to low-value shipments from Canada, Mexico, Europe, and beyond.
How Will It Affect Consumers?
For shoppers, the most immediate consequence will be higher prices. Low-value items from a $50 pair of sneakers shipped from Europe to a $30 handbag bought from a Mexican retailer will now be subject to the same tariffs as high-value imports.
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For example, goods from the European Union face a 15% tariff, meaning many EU-sourced products will see noticeable price jumps.
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Everyday imports like clothing, footwear, accessories, and cosmetics will become more expensive.
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Letters and small personal gifts valued under $100 sent from one individual to another will remain exempt.
For lower-income households, the change could sting the most. A February report from the libertarian Cato Institute warned the policy would have “serious implications for average Americans,” especially in poorer zip codes, where consumers rely more heavily on low-cost international goods.
Shipping Disruptions Already Underway
Beyond higher prices, consumers should also brace for delivery delays. Many international postal operators have already announced they are suspending or restricting shipments to the U.S. while they adapt to the new rules.
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By August 19, at least 16 European postal agencies including those in France, Belgium, Greece, Norway, Sweden, Denmark, and Finland had suspended U.S. shipments.
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DHL temporarily halted parcel delivery for business customers, citing “new processes required by U.S. authorities.” However, its Express and commercial import services remain operational.
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Postal services in New Zealand and India paused many of their shipments to the U.S.
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The UK’s Royal Mail stopped exports to the U.S. on Tuesday but expects to resume once its new systems are updated.
For now, that means many consumers will either face longer wait times for deliveries or find that their favorite overseas retailers have stopped shipping to the U.S. altogether until carriers establish new compliance procedures.
What It Means for Retailers
For global retailers, particularly fast-fashion brands like Shein and Temu that rely on low-value, high-volume orders, the change could be disruptive. Without the de minimis advantage, these companies may need to:
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Raise prices to cover tariff costs.
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Reroute shipments through intermediaries or warehouses in tariff-friendly regions.
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Absorb costs themselves, cutting into already thin margins.
Meanwhile, U.S. retailers may benefit from the policy shift, as higher tariffs on international products could make domestic alternatives more competitive.
The Bigger Picture
The end of the de minimis exemption marks one of the most significant shifts in U.S. trade policy in years. It reflects a growing push to protect domestic industries, enforce tariff compliance, and crack down on illegal imports.
But it also underscores a broader tradeoff: protecting American producers often comes at the expense of American consumers, who will now face higher prices, fewer choices, and shipping disruptions.
For millions of online shoppers, the golden age of cheap, duty-free imports may be coming to a close.
