The trade policies of President Donald Trump have once again reshaped the landscape of global commerce. With the signing of Executive Order 14324 at the end of July 2025, the United States has officially eliminated the long-standing de minimis exemption. This measure—popularly known as the $800 rule—previously allowed shipments worth less than $800 to enter the U.S. duty-free. Now, all imports, regardless of their value, face tariffs ranging from 10% to 50% or flat fees between $80 and $200 per package. The move is shaking e-commerce, small businesses, and consumers across the world.

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What is the de minimis exemption and why was it important?

The de minimis exemption has existed in some form since 1938. Initially, it applied to gifts worth just $5. In 2015, the threshold was raised from $200 to $800, making online shopping from overseas more accessible to millions of American consumers. This system benefited e-commerce platforms, especially Chinese retailers such as Shein, Temu, and AliExpress, which flooded the U.S. with low-cost goods that bypassed tariffs.

According to U.S. Customs and Border Protection (CBP), shipments under the de minimis rule skyrocketed from 139 million in 2015 to an estimated 1.36 billion in 2024—an average of nearly 4 million packages arriving daily. This rapid growth turned what was once a minor trade rule into a major loophole.

Why did Trump end the de minimis exemption?

The Trump administration framed the decision as part of a broader protectionist strategy to safeguard U.S. industries and combat illicit trade. The executive order argued that “the de minimis exemption has been abused, and carriers have shipped illicit fentanyl and other synthetic opioids, precursors, and paraphernalia to the United States relying on the lighter security measures applied to these shipments, causing the deaths of Americans.”

White House trade adviser Peter Navarro reinforced this point: “President Trump’s ending of the deadly de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous prohibited items, and add up to $10 billion a year in tariff revenues to our Treasury.”

In addition to national security concerns, the administration emphasized its goal to reduce the trade deficit, particularly with China. Ending the de minimis exemption is seen as a way to level the playing field between foreign e-commerce giants and established U.S. retailers.

Is the de minimis exemption still in effect?

As of August 29, 2025, the de minimis exemption is no longer in effect for any country. Initially, the Trump administration had already suspended it for shipments from China and Hong Kong in May, but the new executive order extends the elimination globally.

This means that from this date forward, every package entering the United States—no matter how small—must pay duties based on its country of origin. For Mexico, any shipment not certified under the USMCA agreement will face a 25% tariff ad valorem, with additional tariffs of up to 50% on goods containing steel, aluminum, or copper.

What countries are not shipping to the U.S. anymore?

The uncertainty surrounding customs collection has led to a wave of postal suspensions. Mexico’s postal service and Correos de México announced a temporary halt to shipments bound for the U.S. “in the meantime as operational processes are defined.”

Similarly, postal operators in Germany, France, Japan, Canada, Spain, Australia, New Zealand, and the United Kingdom have suspended outbound shipments to the U.S., citing logistical challenges and lack of clarity on how the new rules will be implemented. DHL confirmed that “some postal services temporarily suspended shipments to the United States due to the new processes required by U.S. authorities.”

Is de minimis gone for good?

Officials have signaled that this is not a temporary measure. A senior administration representative stated the policy was permanent and that any attempt to restore the exemption for trusted partners was “dead on arrival.” While Correos de México and other postal agencies describe their suspensions as temporary, the underlying U.S. regulation shows no sign of reversal.

For now, de minimis is gone, ending nearly a century of duty-free small package trade into the United States.

How will this affect consumers and small businesses?

The immediate effect is higher prices and more complicated customs procedures. Goods that previously entered the U.S. duty-free now face tariffs or flat fees. Some buyers have already reported shocking bills. Influencer Amanda Ivanelli went viral after receiving a $1,243 FedEx invoice for a clothing order from ASOS. Another shopper said DHL charged $1,700 in duties for an Australian fashion order—three times the price of the clothing.

Alison Layfield, VP of product development at ePost Global, told AP: “Consumers are going to be surprised. I think they are going to experience a shock, or at some point they are going to see that extra cost.”

For small businesses using platforms like Etsy or eBay, the policy creates hurdles. Tariffs increase costs and may deter American buyers from purchasing handmade or vintage goods abroad. Logistics providers like FedEx, UPS, and DHL are now responsible for notifying customers about duties and collecting payments before packages can be released, adding further delays and service charges.

What should consumers do to avoid surprise import bills?

Experts recommend that buyers pay close attention to the country of origin listed on products, as tariffs are tied to where items are manufactured, not necessarily where they are shipped from. Checking whether retailers include duties at checkout, looking for “delivered with duties paid” (DDP) labels, and preferring sellers with U.S.-based warehouses can help avoid unexpected costs.

However, as many e-commerce platforms adjust to the new system, U.S. customers may see higher base prices and shipping costs upfront.