The Trump administration on Friday ended U.S. duty-free imports of packages worth less than $800, the so-called "de minimis" exemption that has fueled a surge in shipments from global sellers to U.S. consumers who will now likely face higher prices.

Washington

The U.S. government has eliminated the de minimis exemption, which previously allowed packages valued under $800 to enter the country duty-free. This policy change is expected to result in higher prices for U.S. consumers and increased administrative requirements for businesses shipping goods into the United States. 

The move has been justified by concerns over illicit drug trafficking and claims of unfair advantages for foreign e-commerce firms. Major international postal services have paused shipments to the U.S. while adapting to the new rules, and some e-commerce platforms have already begun raising prices. Small businesses, in particular, may struggle to absorb the additional costs and are considering passing them on to customers.

How the end of de minimis rule will hit U.S. shoppers, businesses

The U.S. government ended the de minimis exemption on Friday. Packages worth less than $800 can no longer be sent duty-free from outside the country. But will that mean U.S. consumers now face higher prices? The Trump administration argues de minimis enabled traffickers to send parcels containing fentanyl into the U.S. Some U.S. retailers and industry groups also opposed the exemption. They felt it gave an unfair advantage to foreign e-commerce firms like Shein and Timu, as well as some third-party sellers on Amazon. De minimis enabled a cross-border e-commerce surge where U.S. shoppers snapped up bargains like $12 dresses on Timu. Orders landed on their doorsteps free of duties as long as their packages were valued at less than $800, until May 2nd when exemptions for China and Hong Kong ended. In fiscal 2024, 1.36 billion shipments arrived under de minimis with a declared value of $64.6 billion. U.S. government data says about 73% of de minimis packages entering the U.S. originated from China last year. The change has caused turmoil for postal services around the world. Germany's DHL and mail services in Australia, Britain, Japan and South Korea are among those to pause shipments to the U.S. as they work to adapt. The new tariff regime will also increase paperwork for sellers, as U.S. customs requires information on the origin and type of goods in packages. E-commerce giants Shein and Timu have had time to adapt to the change since May, though prices on Shein have started to increase. It's harder for small businesses to absorb tariffs, and some plan to raise prices to offset the extra costs. Platforms like eBay and Etsy have advised sellers to communicate with customers about tariff-related price hikes.

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Chicago

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Sana'a

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Moscow

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Kyiv

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New York

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Council of the City of Sydney

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Breakdown