Washington, August 29, 2025 — The United States has officially ended its long-standing de minimis tariff exemption, a rule that previously allowed packages valued under $800 to enter the country without duties. The move is expected to reshape global e-commerce, raise costs for consumers, and force significant changes in shipping practices worldwide.
A Major Policy Shift
The exemption, first introduced in the 1930s and expanded in 2015, had fueled an explosion of low-cost online shopping, particularly from overseas sellers in China and Southeast Asia. By eliminating tariffs on billions of small parcels each year, it gave global platforms and fast-fashion retailers a competitive edge over U.S. businesses.
Now, all imports—no matter how small in value—will face standard customs duties. A six-month transition period will apply, during which certain postal operators can charge flat fees between $80 and $200 per package, depending on the country of origin. After February 2026, however, full tariff rates will be enforced.
Why the Change?
U.S. officials argue the exemption had been abused, allowing a flood of cheap imports that undercut domestic producers and opened channels for illicit goods, including counterfeit products and narcotics. The policy overhaul is also expected to generate billions in new tariff revenue annually, funds that could support American industries struggling to compete with low-cost foreign manufacturing.
Impact on E-Commerce and Shipping
In 2024 alone, more than 1.3 billion packages entered the U.S. under the de minimis rule, worth nearly $65 billion in total. The sudden end of the exemption means:
- Shoppers will see higher prices and potential delivery surcharges.
- Small businesses and online sellers face new customs paperwork and thinner profit margins.
- Postal services in several countries have already slowed or suspended shipments to the U.S. as they adjust to the new system.
- Large courier companies like FedEx and UPS, which already manage customs clearance, are better positioned to handle the transition.
Looking Ahead
Economists warn that the change could slow the growth of cross-border e-commerce, while retailers may look to establish warehouses inside the U.S. to avoid higher tariffs. For consumers, the days of ultra-cheap, duty-free online shopping from overseas are likely over.
The policy signals a clear shift toward protectionist trade practices, aiming to strengthen domestic industries but with immediate consequences for millions of households accustomed to low-cost imports.
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