Etsy Shares Plummet 8% as De Minimis Exemption Ends

Etsy stock fell 8.4% on Monday after President Trump signed an executive order eliminating the de minimis exemption for imported goods worth under $800. This exemption allowed goods to be exempt from taxes and tariffs. The move is expected to impact Etsy's revenue and other key financial items. The company has attempted to comfort its sellers with best practices in navigating the new tariff regime.

Etsy Inc. (ETSY) stock experienced a significant drop of 8.41% on Monday, August 25, 2025, following President Trump's executive order eliminating the de minimis exemption for imported goods worth under $800. This exemption had allowed goods to enter the United States duty-free, which was a critical component of Etsy's business model.

Etsy's business model relies heavily on connecting millions of small, independent creators from around the world with American consumers. The elimination of the de minimis exemption directly impacts this model by disrupting international shipping. Several key nations' national postal services, including South Korea, Sweden, Denmark, and the Czech Republic, have temporarily halted all parcel shipments to the United States in response to the new, complex tariff collection requirements [1].

The abrupt stoppage of shipments severs a critical artery for Etsy's international sellers, who are now unable to fulfill orders to the platform's largest market. Additionally, the prospect of new import duties on lower-priced goods threatens to inflate costs for U.S. buyers, potentially dampening demand for the cross-border commerce that defines the Etsy brand.

ETSY shares closed Monday’s session at $57.39, down from a 52-week high of $70.56. The stock has shown resilience, with a 52-week low of $40.05. The immediate impact on Etsy's revenue and key financial items remains uncertain, but the company has attempted to comfort its sellers with best practices in navigating the new tariff regime [1].

International postal services, such as DHL and the Austrian Post, have also announced plans to halt shipments to the United States, further exacerbating the issue. The elimination of the de minimis exemption is expected to affect discount sellers and online marketplaces like Etsy and Shopify, which have connected U.S. consumers to businesses worldwide [2].

Etsy has recommended sellers pay duties and other fees when purchasing shipping labels to maintain a seamless shopping experience. However, some Etsy sellers have decided to halt sales to U.S. customers, citing the uncertainty and potential financial burden of the new tariff regime.

The U.S. Customs and Border Protection estimated that more than 1.36 billion de minimis shipments entered the country last fiscal year, with the agency processing more than 4 million de minimis shipments each day. The latest executive order imposes an $80 per item charge for a country with a tariff rate less than 16%, or costs as high as $160 per item for a country with a tariff rate of between 16% and 25%, and $200 per item for a country with a tariff rate above 25% [2].

The impact of this policy change on Etsy's financial performance will be closely monitored by investors and financial professionals. As the situation evolves, further analysis will be necessary to assess the long-term implications for the company and its stock price.

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/08/47320141/etsy-stock-tumbles-as-halt-on-international-shipments-threatens-global-marketplace
[2] https://finance.yahoo.com/news/small-businesses-scrambling-us-tariff-164306523.html