U.S. To Imminently Suspend De Minimis Tariff Exemption

Washington, D.C. (August 28, 2025) - On July 30, 2025, President Trump issued an executive order suspending an exemption on tariffs for certain low-value imported goods, commonly referred to as the "de minimis exemption." The order will take effect for goods entering the United States on or after August 29, 2025. This Client Alert examines the de minimis exemption and what its suspension may mean for U.S. businesses.

The De Minimis Exemption

The de minimis exemption is codified at 19 U.S.C. § 1321(a)(2)(C), and authorizes the Treasury Department to allow individuals or businesses to import goods with retail values of $800 or less in the country of shipment each day, without payment of duties. According to the Trump Administration, the de minimis exemption is increasingly used to facilitate crime and duty circumvention. To that end, since taking office, President Trump has issued a number of executive orders suspending, reinstating, and, most recently, suspending the de minimis exemption once more.

Suspension of the De Minimis Exemption

In the July 30, 2025 executive order, President Trump suspended the de minimis exemption for goods without regard to country of origin, value, method of entry, or mode of transport, with narrow exceptions for goods that the President may not regulate under the International Emergency Economic Powers Act ("IEEPA"). The order will not affect the de minimis exemption for certain low-value gifts or household or personal items brought into the United States during travel.

For goods that are subject to IEEPA, carriers delivering shipments through international postal networks must declare the country of origin and collect and remit IEEPA duties. For the first six months after the order takes effect, the applicable tariff rate will be either (a) the ad valorem rate calculated by applying the applicable IEEPA tariff rate to the assessed value of each postal item, or (b) a flat-rate duty of between $80 and $200 per item, depending on the IEEPA rate in place with respect to the country of origin. The flat rate will not be available after this six- month period.

Application of Executive Order

The de minimis exemption will become effective for any goods entered for consumption or withdrawn from warehouse for consumption on or after August 29, 2025. International sales of even single small value goods will lose their de minimis exemption, will be subject to duties and taxes, and must be processed through the Automated Commercial Environment system with the United States Customs and Border Protection ("CBP") upon entry. CBP in turn is authorized to require entry bonds, even for small shipments.

Key Takeaways

Businesses or individuals importing small or low-value items will be subject to tariffs imminently, and this new initiative is causing particular concern to small businesses. Processing tariffs will likely lead to slowdowns and confusion at points of entry and with international mailings. Additionally, global mail carriers have reportedly temporarily ceased shipments to the United States in order to work through confusion concerning the Executive Order. Importers can therefore expect difficulties with import compliance and shipments.

Lewis Brisbois's attorneys are actively engaged in the wide range of legal issues in this area and are advising clients on managing legal and business risk as events continue to develop at an accelerated pace. For more information, contact the author or editors of this alert.Visit our Ukraine Conflict, International Trade, Export, Import and Investment Controls & National Security Practice page for additional alerts in this area.

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