For now, the popular loophole that allowed lower-value packages to arrive into the U.S. from abroad without expensive duties is closed as of today. As we have previously reported, the loophole – known as the de minimis exemption – expired today after U.S. President Donald Trump signed an executive order to sunset the exemption as of August 29, 2025.
About the de minimis exemption
The de minimis exemption was originally passed by Congress by members of both parties as a way to reduce inflationary pressures on both businesses and consumers buying and selling goods in the U.S. There have been many iterations of items being treated as de minimis under U.S. tax law for a long time, and some version of the current shipping exemption has been in place since the 1930s.
Under the rule, which has now ended, shippers could move goods valued under $800 into the U.S. without duties or taxes. The goods still get screened by U.S. Customs and Border Protection (CBP) but without the extra costs. The rule has been a convenient factor for many brands bringing goods to the U.S.
What the end of the de minimis exemption means for shippers
With the de minimis exemption being removed from the picture, shippers will have to pay to ship lower-value goods into the U.S. Most items will now be subject to normal duties and taxes, including the latest rounds of Trump administration tariffs. It will cost shippers more to do business. Shippers may be more averse to shipping certain goods into the U.S. Shippers may also choose their markets selectively, based on where they think the highest return on higher investment will be.
What the end of the de minimis exemption means for consumers
Without the de minimis exemption, it is almost certain that American consumers will pay higher prices for items valued under $800. For a long time, in the globalized world, it has been a convenience to receive cheaper goods through retailers such as Amazon, Temu, Walmart, and others from abroad, without being subjected to rigorous duties, such as tariffs. That is ending, and American consumers won’t be happy about it. Higher prices will likely be a thing in the coming months.
What the end of the de minimis exemption means for global trade
As we have reported, many countries have suspended mail shipments to the U.S. as of this week. Those countries include Australia, France, Germany, Japan, India, Italy, New Zealand, Spain and the United Kingdom. And as of yesterday, Mexico as well. It won’t just become more costly for American consumers, but there might be less availability for certain goods.
There’s the possibility, as has happened throughout the first year of Trump’s second presidency, that countries will choose to make a larger trade deal with the Trump administration, and some form of the de minimis exemption loophole will be re-implemented. However, both American consumers and foreign governments may need to feel the pain first, before a vocal response and change occurs.
