US Eliminates De Minimis Tariff Exemption for All Imports, Impacting E-commerce

The US is eliminating its de minimis tariff exemption for imports valued at $800 or less, effective August 29, to curb tariff evasion and bolster import oversight. This move will disrupt e-commerce platforms like Shein, Temu, Etsy, and eBay, which must now contend with higher compliance costs and potentially lower margins. The decision aims to address concerns over national security and economic fairness, as well as to restrict the smuggling of opioids and underpriced goods that undercut domestic producers.

The United States is set to eliminate its de minimis tariff exemption for imports valued at $800 or less, effective August 29. This move, aimed at curbing tariff evasion and bolstering import oversight, will significantly impact e-commerce platforms like Shein, Temu, Etsy, and eBay [3].

The decision follows increasing concerns over national security and economic fairness, as well as the smuggling of opioids and underpriced goods that undercut domestic producers. The acceleration of the exemption's repeal, originally scheduled for mid-2027, reflects these growing concerns [1].

The new policy will require goods shipped through the postal system to face one of two tariffs: an ad valorem duty equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate [1].

This change comes as a surprise to many, including businesses that have relied on de minimis to sustain their cross-border trade. Etsy, for instance, has argued that these exemptions are crucial for small creators, artisans, and makers to participate in global trade [1]. Similarly, eBay has highlighted the importance of de minimis for American consumers to access a global market for used goods and unique inventory [1].

The elimination of de minimis is expected to increase compliance costs for these platforms and potentially lower their margins. Andrew Wilson, deputy secretary general of the International Chamber of Commerce, has raised concerns about the U.S. authorities' ability to handle the new tariff collections, potentially leading to delays and backlogs [1].

This latest move is part of a broader trend of hefty import tariffs imposed by the Trump administration, which has already disrupted e-commerce flows and increased costs for businesses. The complexity of doing business with the U.S. has been significantly heightened, posing challenges for both domestic and international businesses [1].

References:
[1] https://www.reuters.com/business/retail-consumer/us-end-parcel-tax-relief-threatens-ebay-etsy-trade-2025-07-31/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TS172:0-us-end-of-parcel-tax-relief-threatens-ebay-etsy-trade/
[3] https://www.benzinga.com/news/politics/25/08/46816112/us-ends-de-minimis-tariff-loophole-for-all-imports-disrupting-global-e-commerce