The United States government has officially removed the $800 de minimis duty-free threshold for international shipments, effective August 29, 2025. This ends a long-standing rule that allowed low-value goods to enter the country without duties or extensive customs checks.
Previously, the exemption had already been suspended for imports from China and Hong Kong. Now, the removal applies universally, meaning all shipments—regardless of their value or origin—will be subject to duties. During a six-month transition period, importers will either pay ad valorem tariffs based on existing country-specific rates or a flat fee ranging between $80 and $200.
The decision follows rising concerns that the rule was being exploited, particularly in cases involving illicit goods and in ways that undercut domestic manufacturers. Since 2015, de minimis shipments surged from about 134 million annually to over 1.3 billion, with China and Hong Kong accounting for a major share.
For consumers and small businesses, the policy shift is expected to bring higher costs and increased complexity for cross-border e-commerce. Affordable platforms that relied heavily on duty-free shipping may face new challenges.
Larger retailers and logistics providers, however, are better positioned to adapt, as they already manage infrastructure to process and pay duties at scale.
The end of the de minimis exemption represents a major turning point in U.S. trade policy. By closing the loophole, the government aims to strengthen border security, protect domestic industries, and reshape the flow of low-value imports into the country.
