US Shoppers and Businesses Face Changes with De Minimis Exemption Ended

The end of the de minimis exemption in the US means that shoppers and businesses will have to pay duties on all imported goods, regardless of their value. This change will impact Amazon, which offers a wide range of products, including electronic and computer products, cultural products, and other goods. The exemption previously allowed for small imports to be duty-free, but this change will affect both shoppers and businesses.

The U.S. administration has ended the duty-free import of packages worth less than $800, known as the "de minimis" exemption, a decision that will increase costs for retailers and consumers alike. This change, effective from August 29, 2025, will significantly alter the landscape of cross-border e-commerce in the United States.

Reasons Behind the Change

The Trump administration cited several reasons for the repeal of the de minimis exemption. Primarily, the administration argued that the exemption facilitated the easy entry of narcotics, such as fentanyl, into the country. Additionally, U.S. retailers and industry groups opposed the exemption, contending that it provided an unfair advantage to foreign e-commerce companies like Shein and Temu. The exemption had previously allowed packages valued at less than $800 to enter the U.S. duty-free [1].

Implications for U.S. Shoppers

The de minimis exemption had enabled a surge in cross-border e-commerce, with American shoppers enjoying duty-free imports of goods. This exemption had been particularly beneficial for retailers like Shein and Temu, which often shipped from China. With the exemption eliminated, U.S. shoppers can expect to see an increase in prices for imported goods. Small businesses, including those selling on platforms like eBay and Etsy, may also need to communicate tariff-related price increases to their customers [2].

Impact on Online Retailers

E-commerce giants like Amazon, Shein, and Temu will be among the most affected. Amazon, which offers a wide range of products, including electronics, computers, and cultural items, will need to adjust its pricing strategy to account for the new duties. While Shein and Temu have had time to adapt since May, the latest change may put them in a better position compared to some rivals, as the cost of shipping from China becomes more economical relative to other countries [2].

Ripple Effects on Postal Services

The change has caused turmoil in postal services worldwide. Australia Post, Deutsche Post, Japan Post, Korea Post, and others have paused shipments to the U.S. as they adapt to the new rules. Britain's Royal Mail has resumed shipments using a "postal delivery duties paid" service, allowing customers to cover duties upfront [1].

Conclusion

The end of the de minimis exemption will have significant implications for U.S. shoppers and businesses. While the change aims to curb illicit goods and raise revenue for the federal government, it will also increase the cost of imported goods and add complexity to cross-border e-commerce. Retailers and consumers alike will need to adapt to the new reality, with potential price increases and additional paperwork.

References

[1] https://www.reuters.com/business/retail-consumer/what-end-de-minimis-exemption-means-us-shoppers-businesses-2025-08-29/
[2] https://seekingalpha.com/article/4817823-the-end-of-the-de-minimis-exemption?source=affiliate_program:stockanalysis.com&utm_medium=affiliate&utm_source=stockanalysis.com&affid=858&oid=16&transaction=fb38ea93581b4ea3bcf27c3c3d6dde87