President Trump's Executive Order suspending duty-free de minimis treatment of shipments entering the U.S. took effect last week. The de minimis exemption has been used by retailers around the world catering to the American shopper, and the end of the policy is causing a ripple effect around the globe.
What is De Minimis?
De minimis is a Latin term that means "of the smallest things," "trifling," "insignificant." In the U.S., the de minimis rule dates back to the Tariff Act of 1930. Upon passage of the act, individuals and businesses were permitted to import shipments under $200 without paying duties and taxes.
The intent behind the exemption was to allow CBP to focus on higher-risk and higher-revenue imports and to encourage small-scale trade. In 2016, the U.S. raised the de minimis threshold to $800 with the passage of the Trade Facilitation and Trade Enforcement Act.
After the 2016 change, de minimis shipments surged, from 139 million in FY 2015 to 1.36 billion in FY 2024. International retailers took advantage of the new threshold, and many U.S. policymakers began referring to de minimis as a "loophole."
Citing safety and fairness concerns, there were dozens of unsuccessful efforts in the U.S. Congress to end de minimis. Finally, the Big Beautiful Bill of 2025 included a provision that permanently repeals the statutory basis for the de minimis exemption worldwide, effective July 1, 2027. However, on July 30, 2025, President Trump signed an Executive Order expediting this timeline, ending the exemption on August 29, 2025.
What the Changes Mean for Consumers
With the duty-free threshold eliminated, all imported items, no matter how low in value, now face tariffs. This shift will likely translate into higher prices for consumers. Some global postal services including Australia Post and Deutsche Post, have paused shipments to the U.S. As a result, consumers may experience delays and canceled orders. Consumer groups advise consumers to re-read cancellation and return policies for international merchants going forward.
What the Changes Mean for Importers
Following the Executive Order, CBP began publishing guidance to help importers navigate the change. As of August 29, 2025, all requests for de minimis entry will be rejected by CBP. Importers will be required to submit an entry type filed in the Automated Commercial Environment (ACE), except for shipments sent through the international postal network, along with the payment of all applicable duties, taxes, and fees.
CBP published a Federal Register notice guiding shipments sent through the international postal network that previously qualified for de minimis. For postal shipments, the transportation carriers or other qualified parties approved by CBP must collect and remit duties. The duty rate is based on the effective IEEPA tariff rate applicable to the country of origin of the product as follows:
- Countries with an effective IEEPA tariff rate of less than 16%: $80 per item;
- Countries with an effective IEEPA tariff rate between 16 and 25% (inclusive): $160 per item; and
- Countries with an effective IEEPA tariff rate above 25%: $200 per item.
The specific duty will cease to be effective for products entered for consumption on or after February 28, 2026, at which time only the ad valorem duty will be applicable.
View CSMS #65934463 guidance here and view the list of the qualified parties here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
