The United States will officially end the long-standing de minimis exemption for low-value imports starting August 29, 2025, marking a major shift in US trade policy and customs regulation.
The White House announced on Wednesday that an executive order signed by President Donald Trump will remove the de minimis threshold, which previously allowed foreign goods worth up to $800 to enter the country duty-free if shipped outside the international postal system.
This significant change aims to protect American businesses, address national security concerns, and tighten control over shipments, especially those coming from China and Hong Kong.
What Does Ending the De Minimis Exemption Mean?
Under the new rule, all imported packages, regardless of their low declared value, will be subject to applicable customs duties and tariffs. Goods arriving through private carriers will no longer enjoy the $800 tax-free limit, which has been widely used by online retailers and cross-border e-commerce platforms.
New Tariff Options for Foreign Goods
According to the White House statement, goods sent through the US Postal Service will be taxed under one of two options:
- An ad valorem tariff, which matches the effective tariff rate in the country of origin.
- A fixed fee, ranging from $80 to $200 per shipment, valid for six months, depending on the origin country’s standard tariff rates.
Why Is This Happening Now?
This decision accelerates a policy already included in the newly passed “One Big Beautiful Bill Act,” which mandates the complete removal of the de minimis exemption worldwide by July 1, 2027. By acting sooner, the Trump administration says it seeks to counter national emergencies and ensure that US manufacturers and small businesses remain competitive.
The move also aligns with previous measures aimed at controlling Chinese and Hong Kong exports, which often use the de minimis loophole to bypass US customs duties.
Impact on Businesses and Consumers
The end of the de minimis rule could raise prices for consumers buying low-cost goods from abroad, while domestic producers may benefit from reduced competition from duty-free imports.
US Customs and Border Protection (CBP) is expected to issue detailed guidance for importers, e-commerce retailers, and freight companies in the coming weeks.
Key Takeaway
Starting August 29, 2025, low-value foreign packages arriving in the United States will no longer be duty-free. This major policy shift underscores the government’s commitment to protect domestic industries, enforce fair trade practices, and close loopholes that have allowed billions in untaxed imports into the country each year.
