End of 'De Minimis' Exemption: Implications for Investors and U.S. Imports

The US will no longer exempt imports worth less than $800 from duties starting Friday, impacting 4M daily shipments. This marks the end of the "de minimis" exemption, which previously allowed duty-free entry for small packages. Tighter customs checks will also be implemented, affecting e-commerce and online shoppers.

Starting Friday, the United States will no longer exempt imports worth less than $800 from duties, marking the end of the "de minimis" exemption. This change, which has been widely anticipated, will impact approximately 4 million daily shipments and significantly alter the landscape of e-commerce and online shopping in the country.

The de minimis rule, which dates back to the Tariff Act of 1930, allowed small packages to enter the U.S. duty-free. This rule was particularly beneficial for online retailers and express delivery companies, as it facilitated the importation of inexpensive goods directly to consumers. However, the exemption also created a loophole that critics argued allowed unsafe or illegal items to enter the U.S. market without proper customs inspection [1].

The shift in policy is a result of President Trump's executive order, which suspends the de minimis rule for all U.S. imports. The new policy aims to close a "catastrophic loophole" that shippers have used to evade tariffs and smuggle dangerous synthetic opioids into the country [2]. The change will ensure that all businesses follow the same rules regarding the payment of duties, thereby increasing tariff revenues and potentially lowering the trade deficit.

With the de minimis exemption gone, all products entering the U.S. will be subject to duties and tariffs based on their origin. The current tariff rates vary widely, from 10% for the United Kingdom to 50% for India, and across a wide range of products. Consequently, consumers may see price increases due to higher tariffs and increased shipping costs.

The impact on consumers is expected to be significant. According to Courtney Griffin of the Consumer Federation of America, consumers should consider buying domestically when possible to avoid import fees and potential shipping delays. Additionally, consumers should be aware of changes to retailers' shipping and return policies, especially during the upcoming holiday season. Griffin also warns of potential scams exploiting the confusion over the new policy [1].

The new policy has also sparked a global reaction. Many international postal and shipping services are temporarily suspending delivery of some packages to the U.S. as they figure out how to handle the new paperwork and payment processes. Switzerland's national carrier, Swiss Post, and other entities, such as Japan Post and India's Department of Posts, have halted most shipments to the U.S. until further notice [1].

While the immediate impact may be disruptive, some experts predict that over time, consumers will see benefits. Lori Wallach, director of the Rethink Trade program at the American Economic Liberties Project, believes that the new policy will lead to more thorough inspections of packages, ensuring that consumers receive safer and more genuine products [1].

In conclusion, the end of the de minimis exemption is a significant shift in U.S. trade policy. While it may result in higher costs for consumers and temporary disruptions for businesses, the long-term benefits include increased safety for consumers and a more equitable trade environment.

References:
[1] https://www.npr.org/2025/08/28/nx-s1-5519361/de-minimis-rule-tariffs-consumers-imports-trump
[2] https://www.cbsnews.com/detroit/news/de-minimis-us-tariffs-exemption-low-value-imports-ends/