U.S. ends $800 de minimis exemption, imposing duties on all low-value imports, effective August 29

Summary

Effective 29 August 2025 the White House removed the longstanding $800 de minimis exemption that allowed low-value shipments into the United States to enter duty-free. The executive order applies to all commercial low-value shipments, regardless of origin or entry method, and directs that such parcels must now go through formal customs entry and be subject to applicable duties and fees.

Key Points

The $800 de minimis exemption, in place since 2016, was terminated on 29 August 2025.
All low-value commercial shipments, previously exempt, are now subject to duties and formal customs entry.
Non-postal shipments via integrators (UPS, FedEx, DHL) will clear through ACE and may require entry filings and bonds.
Postal packages will face duties based on the country’s tariff rate plus a flat per-package fee (tiered at roughly $80, $160 or $200 depending on IEEPA tariff rate category).
The move follows targeted suspensions earlier in 2025 for China and Hong Kong and steeper tariffs announced in April and May (tariff rates and per-item/postal fees were substantially increased in prior executive actions).
De minimis parcel volumes exploded from 134 million (2015) to more than 1.36 billion (2024); CBP processes over 4 million de minimis shipments daily.
Major impacts expected for e-commerce platforms, micro-importers and air cargo routes — firms like Shein and Temu are already shifting to bulk sea shipments and US-based fulfilment hubs.
Analysts report sharp declines in China–US air cargo volumes and e-commerce air bookings since reciprocal tariffs were applied; supply chains and carrier networks are being reshaped accordingly.

Content Summary

The White House announced an executive order that removes the de minimis exemption as of 12:01 AM ET on 29 August 2025. The policy change closes what officials described as a loophole used to evade tariffs and to ship dangerous or below‑market products into the US market. It follows earlier steps in 2025 that suspended de minimis treatment for China and Hong Kong and raised tariff rates and per‑item/postal fees.

Under the new rules, low-value commercial shipments will no longer bypass formal customs processing. Integrator shipments will clear via the Automated Commercial Environment (ACE) and may need customs entries and bonds. Postal items will attract duties per the country of origin’s tariff rate plus a flat fee tiered by IEEPA tariff category.

Industry voices warn of substantial operational and cost implications: small importers and e-commerce sellers must now assign HTS codes, manage more complex entry procedures, and likely face additional fees and slower delivery times. Carriers and freight markets are already adjusting — air cargo volumes on China‑US routes have fallen dramatically, and many sellers are consolidating shipments by sea to US warehouses.

Context and relevance

This is a fundamental change in US trade policy for low-value goods. The de minimis exemption had powered direct‑to‑consumer cross-border e-commerce by allowing millions of small parcels to enter duty-free. Its removal levels the regulatory and cost playing field but also raises friction for online sellers, logistics providers and consumers who may see higher prices and longer delivery times.

For logistics professionals, customs brokers, 3PLs and e-commerce operators, this alters clearance workflows, billing practices and network design. For air and parcel carriers, expect continued volume shifts and route/network reconfiguration. For policy watchers, it signals a tougher stance on tariff evasion and import controls across all origins.

Why should I read this?

Short version: if you sell, ship or move stuff into the US — this hits you. Expect more paperwork, higher landed costs and slower deliveries. Sellers who’ve been relying on duty‑free parcel imports will need to change how they price, fulfil and file customs entries. Logistics teams should start planning for ACE filings, potential bonds, and higher handling fees now.