US to End Duty-Free Exemption for Small Imported Packages

The US government will eliminate the de minimis exemption that has allowed Americans to import packages valued at less than $800 without paying duties, according to a new executive order signed by President Donald Trump. The change, which takes effect August 29, will require small packages from all countries to face the same country-specific tariffs as larger shipments.

Previously, only packages from China had lost this exemption, but the new order extends the policy to all countries. The White House said that, until the new rules take effect, foreign sellers and US companies with overseas warehouses are expected to accelerate shipments to the US. Aaron Rubin, CEO of logistics firm ShipHero, commented on social media that brands may hold sales to clear overseas inventory before the deadline.

There will be temporary exceptions for packages sent through international postal networks, which will be subject to a fixed tariff rate of $80 to $200 per item for the next six months. After this period, all shipments will be taxed based on country-specific tariffs, which are being negotiated with trading partners such as Japan.

The de minimis exemption was originally intended for US travelers bringing home personal items, but it became widely used by ecommerce platforms to ship goods directly to American consumers at low cost. US Customs and Border Protection reports that the country receives about 4 million de minimis shipments daily. Chinese platforms such as Shein and Temu, which previously relied heavily on the exemption, have already adapted to earlier changes by raising prices and adjusting their supply chains.