Donald Trumps ending of the de minimis (duty-free) exemption for packages into the U.S.

31st August 2025

President Trump issued Executive Order 14256 on April 2, 2025, known as part of the "Liberation Day tariffs," which eliminated the de minimis exemption specifically for imports from China and Hong Kong, effective May 2, 2025.

This meant that packages valued under $800 from those regions were no longer duty-free.

Global (All Countries): August 29, 2025
On July 30, 2025, Trump signed Executive Order 14324—"Suspending Duty-Free De Minimis Treatment for All Countries."

This ended the de minimis exemption globally, effective August 29, 2025 at 12:01 a.m. Eastern Daylight.

A short video explaining

U.S. Economy
Consumers

Higher prices: Goods from abroad will now face duties, which companies usually pass on to buyers. Cheap online finds (clothing, electronics, household goods) become more expensive.

Slower deliveries: All packages must go through formal customs clearance, adding time.

Less choice: Some sellers may stop shipping to the U.S. because of compliance costs.

Retailers

Boost for domestic stores: U.S. retailers may benefit, since imports undercutting them on price will shrink.

Compliance costs: Small U.S. businesses that rely on cheap imported parts or goods will see higher costs.

China & Other Export Economies

China hit hardest: China was the biggest user of the de minimis rule, sending millions of small-value e-commerce parcels daily (Shein, Temu, AliExpress). Now those goods face tariffs, weakening their U.S. market share.

Other exporters affected: Vietnam, India, Mexico, and EU sellers also lose the advantage of duty-free small parcels.

Shift in trade routes: Some exporters may try rerouting through Mexico/Canada (though CBP is likely to watch closely).

Global E-Commerce

Platform disruption: Companies like Shein, Temu, and AliExpress that relied on shipping $10-$50 items directly to U.S. consumers are severely impacted.

Market consolidation: Larger retailers with compliance systems (Amazon, Walmart) will adapt more easily, possibly squeezing out smaller foreign sellers.

Potential inflationary push: With import costs up, prices in U.S. e-commerce could rise, contributing (a little) to inflation.

Government Revenues

More tariff revenue: The U.S. Treasury will collect billions more in duties annually.

Administrative burden: Customs will process vastly more declarations, straining resources.

Long-Term Strategic Effects

Reshoring & nearshoring: This move nudges companies to manufacture or assemble more in the U.S. or Mexico to avoid tariffs.

Trade tensions: Countries that depend heavily on U.S. demand (China especially) may retaliate or shift focus to other markets.

Protectionist signal: Other countries may mirror the U.S. and tighten their own de minimis thresholds.

In short:

U.S. consumers pay more, shop less from abroad.

U.S. domestic retailers and some manufacturers gain an edge.

China and low-cost exporters lose a major competitive channel.

Global e-commerce will slow, consolidate, and adapt with new supply chain strategies.