Effective August 29, 2025, President Trump’s latest Executive Order eliminates the de minimis exemption for most commercial imports valued at $800 or less, a move that will significantly impact international shipping and customs practices for businesses and online retailers.
What Is the De Minimis Exemption?
The de minimis exemption allowed imported goods valued at $800 or less to enter the United States duty-free when shipped via private couriers like FedEx, UPS, or DHL. This provision was widely used by e-commerce businesses and cross-border sellers to bypass tariffs and expedite customs clearance.
What Changes with the New Executive Order?
Under the new policy, all commercial shipments—regardless of value—sent through private, non-postal networks will now be subject to full customs duties and tariffs. The exemption will no longer apply, closing a loophole that officials say was being exploited to evade U.S. trade laws.
“President Trump is putting an end to the proliferation of shippers worldwide that deceptively exploit the de minimis privilege to evade duties, inspection, and U.S. law,” the Executive Order states.
How Postal Shipments Are Affected
Shipments sent through the international postal system (such as national postal services abroad) will face one of two new duty assessment methods:
1. Ad Valorem Duty
A percentage-based duty determined by the effective tariff rate under the International Emergency Economic Powers Act (IEEPA), depending on the product’s country of origin.
2. Specific Duty (Temporary)
A flat-rate duty ranging from $80 to $200 per item, depending on the applicable IEEPA tariff rate. This method will be available for six months only, after which all shipments will default to the ad valorem duty method.
What Exemptions Still Apply?
Despite the crackdown, longstanding exemptions under 19 U.S.C. § 1321(a)(2)(A) and (B) remain in effect:
- American travelers can still bring back up to $200 in personal-use items without incurring duties.
- Gifts shipped to individuals valued at $100 or less will continue to enter duty-free.
Why the De Minimis Exemption Was Targeted
The U.S. government cited growing abuse of the exemption by foreign sellers who undervalue or misclassify goods to avoid import duties. The policy aims to level the playing field for domestic businesses, enhance customs enforcement, and generate tariff revenue.
When Does the New Rule Take Effect?
The new import duty rules apply to all commercial shipments valued at $800 or less, effective August 29, 2025.
Frequently Asked Questions
Q: Will I pay duties on items under $800 ordered online from abroad?
A: Yes, if they’re shipped via non-postal couriers like DHL, FedEx, or UPS. These will now be subject to all applicable import duties.
Q: Do gifts and personal travel items still qualify for exemptions?
A: Yes. Genuine gifts valued at $100 or less and personal items brought by travelers up to $200 remain duty-free.
Q: Will postal shipments still receive any preferential treatment?
A: Yes, but they will be subject to new duty options (ad valorem or flat-rate) based on the product’s country of origin.