As of August 29, the United States has officially abolished the longstanding “de minimis” tariff exemption, which had allowed imports of packages valued under $800 to enter duty-free. This change, executed via an executive order issued on July 30, marks the end of nearly a century-old policy designed initially to streamline customs procedures but increasingly exploited by e-commerce platforms.
Under the new rules, all international packages, regardless of their declared value or country of origin, will now be subject to U.S. import duties and customs processing. In response to logistical concerns, the government is offering a six-month transition period during which postal carriers may collect a flat duty fee between $80 and $200 per package, depending on its country of origin and reciprocal tariff rates. After this period ends, parcels will be assessed full ad valorem tariffs based on classification and origin, typically ranging from 10–50% or more of the item’s value.
The shift builds on earlier restrictions introduced in May, which ended the exemption only for shipments from China and Hong Kong, a move intended to stem the inflow of narcotics like fentanyl and boost customs revenue. The broader global removal of this exemption is expected to yield up to $10–13 billion in annual revenue and curb illicit imports, according to trade officials and policy analysts.
However, the abrupt rollout with only a one-month lead time has provoked widespread concern and logistical chaos. Postal systems in countries including Germany, Japan, Australia, and India have suspended or delayed shipments to the U.S., citing confusion over duty collection and data compliance. Major shippers like DHL, UPS, and FedEx are better equipped to adapt and have signaled readiness to continue operations, though smaller postal networks remain in limbo.
Consumers and small businesses will likely feel immediate effects price increases, shipping delays, and reduced access to affordable or niche goods. Low-income households and small online sellers, especially those using platforms like Etsy, are particularly vulnerable. Indeed, stock prices for e-commerce reliant firms like Etsy, eBay, and Shopify have already dropped by double digits in reaction to the news.
Meanwhile, domestic industry groups and policymakers hail the move as a long-awaited step toward leveling the playing field for American manufacturers and retailers, who argue they were undercut by foreign sellers circumventing tariffs through low-value shipments.
