The Trump administration has officially ended U.S. duty-free imports for packages valued under $800, effective Friday. This ends a nearly 90-year-old policy called the “de minimis” rule.
Why It Matters
The change, announced July 30 and effective August 29, could reduce benefits for consumers by up to $13 billion each year, according to a 2024 National Bureau of Economic Research paper.
Packages that were once exempt from tariffs will now likely cost more. Shoppers might see higher prices or extra shipping fees. Shipping companies around the world have already paused deliveries to the U.S. to adjust to the new rules.
What to Know
In the 2024 fiscal year, 1.36 billion shipments came into the U.S. under the de minimis exemption, totaling $64.6 billion in value. About 73% of these came from China. The new rule applies to all countries and could cost U.S. consumers between $11 billion and $13 billion each year—roughly $35 to $80 per person, according to the National Bureau of Economic Research.
Imports into the U.S. are processed based on value:
- Shipments over $2,500 require full paperwork, a customs bond, and a licensed broker.
- Shipments between $801 and $2,500 follow a simpler process with set fees.
- De minimis shipments under $800, before this change, skipped these duties and paperwork entirely.
A Nearly Century-Old Rule
The de minimis exemption has been part of U.S. trade law for decades. Originally, packages valued at $200 or less were exempt from tariffs. In 2016, the threshold increased to $800 under the Trade Facilitation and Trade Enforcement Act, signed by then-President Barack Obama.
This change led to a huge increase in low-value imports—from 140 million shipments in 2014 to 1.36 billion in 2024, making these small packages a major part of U.S. cargo.
An earlier pause on the exemption in February only affected imports from China. The latest executive order applies worldwide, affecting almost all commercial packages. There are limited exceptions for personal letters and gifts under $100.
How the New Rules Work
Most de minimis parcels are handled by commercial carriers. These companies now have to file either informal or formal entry documents and pay the required tariffs. Carriers may be charged standard U.S. tariffs based on the country of origin or, temporarily, flat fees of $80 to $200 during the first six months.
Impacts on Consumers
Businesses might cover the added costs themselves, but more often they will pass them on to buyers. This could mean higher retail prices or extra charges for duties. The actual impact depends on things like country-specific tariffs, U.S. duties on goods, and how sellers adjust their prices.
Robert Khachatryan, CEO at Freight Right Global Logistics, said the end of the de minimis exemption is “one of the most consequential trade policy shifts in years.”
“In the short term, consumers will likely see price increases quickly. Low-cost items like $10 accessories or fast-fashion clothes could go up by double-digit percentages once tariffs and processing fees are added. Small businesses that import in smaller amounts will be most affected, while big retailers like Walmart and Target will see less disruption,” he told Newsweek.
Why Trump Ended It
Supporters of the de minimis rule say it helps Americans get low prices and access to foreign products. Critics, including President Trump, argue it hurts U.S. businesses, allows unsafe products into the country, and lets illegal substances like fentanyl enter.
“It’s very important, de minimis. It’s a big deal,” Trump said in April. “It’s a big scam going on against our country, against really small businesses, and we’ve ended it. We put an end to it.”
The White House said the exemption was being used to “evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States.”
