US Implements End to “De Minimis” Exemption, All Imports Now Subject to Duties

Washington, Aug. 29 - At 12:01 a.m. Eastern Time today, the United States officially suspended its long-standing “de minimis” exemption under 19 U.S.C. § 1321(a)(2)(C), meaning that every package entering the country-regardless of value-is now liable for customs duties.

President Trump signed the executive order on July 30, eliminating duty-free entry for shipments valued at $800 or less, a threshold established to ease small-package processing under the Tariff Act of 1930. Under the new policy, postal service carriers will have a six-month transition option to pay a fixed duty ranging from $80 to $200 per package, by reciprocal tariff rates tied to each country of origin; thereafter, all shipments will incur ad valorem tariffs between 10 percent and 50 percent.

Customs and Border Protection (CBP) reports that, prior to today’s change, an average of 4 million shipments claiming the exemption entered daily, but preliminary figures show that number has already declined to approximately 1 million per day since the global suspension began. International postal agencies from more than 30 countries-including the United Kingdom, Germany, Japan, Mexico, and Australia-have temporarily halted parcel deliveries to the U.S. as they adjust to the new tariff collection procedures.

White House trade adviser Peter Navarro reiterated that the measure is permanent and aimed at closing a loophole used to import illicit substances and undercut domestic businesses. “Closing the de minimis loophole will safeguard American lives by limiting fentanyl trafficking and bolster Treasury revenues by up to $10 billion annually,” Navarro said at a press briefing on Thursday.

Retailers and small businesses that previously relied on low-cost imports now face recalibrated pricing and logistics strategies. Many cross-border e-commerce platforms such as Shein and Temu, which flourished under the duty-free rule, are expected to pass on higher costs to U.S. consumers, while local merchants anticipate a more level competitive playing field.

CBP Commissioner Rodney Scott has stated that customs operations will be scaled up to handle the increased inspection workload, though shipping delays and higher consumer prices are widely anticipated in the months ahead.