The End of De Minimis

In United States trade law, the de minimis exemption allowed low-value international shipments to enter the country duty-free and with minimal customs processing. From the Latin phrase meaning a thing of "little importance," the de minimis exemption was started as a way to save the federal government the time and expense of collecting duties on imported goods with a low retail value. In 1938, the retail value was $1 or less. U.S. lawmakers eventually increased the eligibility cutoff to $5 in 1990, and then to $200 in 1993. In 2016, the Trade Facilitation and Trade Enforcement Act raised the ceiling from $800. This higher threshold is exceptionally generous compared to other countries' limits: the EU's threshold sits around 150 euros ($175) and the U.K.'s ceiling is around 135 pounds ($182).

A wide variety of low-value items have fallen under the exemption, including small kitchen appliances and utensils, beauty products, and apparel from companies like Shein, Temu, AliExpress, and Etsy. Over the past 3 years, de minimis parcels made up 97% of overall shipping volume, with around 4 million of those deliveries processed by United States Customs and Border Protection every day, reported Courtney Griffin of the Consumer Federation of America.

Earlier this year, the Trump administration began chipping away at the de minimis exemption. In May 2025, the exemption was eliminated only for goods from China and Hong Kong. A broader statutory repeal, with an elimination date of July 1, 2027, was later enacted through the "One Big Beautiful Bill Act." But then President Trump accelerated the timeline, issuing an executive order on July 30, 2025, to end the de minimis exemption globally as of August 29, 2025. (There are some exceptions: American travelers will still be able to bring $200 in personal items back to the United States duty-free, and someone abroad can send a gift of $100 or less to the United States duty-free.)

Several factors motivated the repeal. One reason was revenue loss and fairness.  Billions of dollars in potential customs revenue were lost because small purchases evaded duties. Domestic brick-and-mortar retailers argued that the de minimis exemption gave overseas online platforms an unfair advantage. Additionally, as part of Trump's broader nationalist and trade-strategy shift, his repeal aimed to level the playing field and reinforce tariffs and customs enforcement at scale. Another concern of the administration was illicit activity; de minimis shipments were sometimes exploited for trafficking, including smuggling of fentanyl and counterfeit goods, since they required limited screening and paperwork.

If you buy something from abroad, you may begin to see a higher cost for small items since low-value goods that were once exempt must now clear customs with duties, taxes, and fees. Packages sent to the United States valued at less than $800 will now be charged either the tariff rates the United States has on their countries of origin or a flat fee of between $80 and $200, with the latter option available to postal carriers only in the first six months. John Pickel, vice president of supply chain policy at the National Foreign Trade Council, said "On your average de minimis shipment, paying a customs broker and paying the fees will double the cost."

In addition to higher prices, consumers may also begin to notice slower delivery times and customs delays. As postal services and carriers adjust, some countries (including Japan, Switzerland, Mexico, Taiwan, Australia, Austria, Belgium, Finland, France, Germany, India, Italy, Norway, Spain, Sweden, Denmark, Thailand, the U.K., and New Zealand) have paused U.S.-bound shipments due to confusion and uncertainty over processing, paperwork, and customs requirements.

The de minimis exemption allowed Americans to access inexpensive global goods with ease. But as usage surged and loopholes emerged, the U.S. government moved to end the policy. Now, almost every low-value imported item faces new customs scrutiny and costs. "The end of the de minimis exemption will reduce affordability, it will hurt our small businesses, and it will erode the certainty small businesses and families work everyday to build," Maryland state comptroller Brooke Lierman said.