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What the end of 'de minimis' means for online shoppers
  • Business

What the end of ‘de minimis’ means for online shoppers

  • August 28, 2025
  • Roubens Andy King
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For nearly nine decades, an import tax exception allowed low-value packages to enter the U.S. without duties attached. The rule has let American consumers access loads of cheap foreign goods from online retailers.

That’s all changing Friday when the rule known as de minimis is suspended in accordance with an executive order President Trump signed last month. All shipments into the U.S. will be subject to an import tax ranging from $80 to $200 for the next six months, after which the rate will be based on the tariffs imposed on the country of origin.

Since 2015, the de minimis exception has applied to goods with a retail value of less than $800. The rule dates to 1938, when it applied only to goods worth less than $1.

Online retail giants such as Temu and Shein, which ship products from China with hyper-low price tags, have “benefited massively” from the exception, said Dominick Miserandino, chief executive of the online hub Retail Tech Media Nexus.

“We’re used to this super cheap pricing mentality for a lot of online goods, and with the removal of this rule, it’s going away,” Miserandino said. “It’s definitely going to hit consumers who are accustomed to buying a $5 phone case.”

The rise and fall of ‘de minimis’

Congress first introduced the exception in 1938 to boost trade and spare the government the hassle of processing low-value parcels generating negligible tax revenue. De minimis is Latin for something of little importance.

Lawmakers increased the threshold from $1 to $5 in 1990 and again to $200 in 1993. Under the most recent threshold of $800, the number of packages entering the U.S. duty-free has skyrocketed.

More than 1.30 billion packages with a combined value of $64.6 billion reached the U.S. with no import tax in 2024, compared to 134 million packages in 2015, according to U.S. Customs and Border Protection.

Trump has called the rule a “scam” that weakens American businesses and allows dangerous goods to enter the country without oversight. Packages that claim the exemption are not inspected as thoroughly by U.S. Customs personnel.

Trump ended the so-called loophole for goods sent from China in May before eliminating the practice for goods from all other foreign nations. Documents and gifts under $100 are still exempt from import taxes.

What can U.S. consumers expect?

The price increase Americans could see on everyday goods such as pet products and apparel depends on where the package is coming from and what portion of the import duty the shopper is responsible for.

Large manufacturers may choose to cover the duty themselves, while smaller sellers like those on the online shopping platform Etsy could pass costs onto customers.

Trump placed some of his highest tariffs of 30% and 35% on China and Canada, respectively, though the rate on Chinese goods remains under negotiation. Switzerland faces a tariff of 39%. The price of goods shipped from these countries will likely rise in proportion with the tariffs, leading to significant jumps in sticker prices.

It will also be more difficult to get foreign goods delivered, at least for the moment. Several international postage services are suspending deliveries to the U.S. in response to Trump’s executive order. Japan, Switzerland, France and Australia are among more than a dozen nations that have paused U.S. shipments while they adjust to the new pricing requirements.

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