A long-standing exemption that let low-cost imports enter the U.S. duty-free will end Aug. 29, disrupting a key advantage for fast fashion and cross-border e-commerce firms. The change brings new tariff exposure and enforcement scrutiny to millions of daily shipments.
Low-Value Imports Lose Their Fast Lane
The Trump administration will end the de minimis exemption for most U.S. imports on August 29, according to a White House fact sheet released last week. The move eliminates duty- and tax-free entry for shipments valued under $800, an exemption that has underpinned cross-border e-commerce models from companies like Shein, Temu, and other high-volume direct-to-consumer sellers.
Instead of bypassing tariffs, these low-value shipments will now face the same duties imposed on traditional imports. That includes the full spectrum of Trump-era tariffs reimposed on a country-specific basis earlier this summer. The only carve-out applies to packages arriving through the international postal network, which will face an alternative duty structure during a six-month transition period.
Postal packages will either be taxed at an ad valorem rate tied to the International Emergency Economic Powers Act (IEEPA), based on the country of origin, or assessed a flat-rate duty ranging from $80 to $200 per item. The latter will sunset after six months, at which point all such shipments will be subject to the ad valorem methodology.
The postal channel has always been difficult, namely because of the lack of traceability and the amount of consumer-to-consumer volume that is shipped there,” said Hugo Pakula, CEO of Tru Identity, in a LinkedIn post Wednesday.
Compliance, Security, and a Shrinking Grey Zone
The administration framed the change as a crackdown on tariff circumvention and illicit trade. According to the White House, 90% of all U.S. Customs seizures in FY2024 stemmed from de minimis shipments, highlighting the volume and scrutiny gap between exempt parcels and standard imports.
While marketed as low-risk consumer transactions, de minimis shipments have become a favored channel for counterfeit goods, substandard products, and, in some cases, drug trafficking. The lack of documentation and limited oversight has posed challenges for customs enforcement, regulators, and ethical importers.
Under the revised rules, de minimis benefits will still apply in two narrow contexts: U.S. travelers may bring back up to $200 in goods duty-free, and individuals may still send or receive “bona fide gifts” of $100 or less without triggering tariffs.
The administration’s pivot aligns with its broader shift away from flat, uniform tariffs toward differentiated, bilateral frameworks. The U.S. revoked de minimis eligibility for shipments from China and Hong Kong in May, and signaled earlier this year that exemptions would phase out as systems for collecting revenue came online.
A New Playbook for Cross-Border E-Commerce
The rollback of de minimis privileges is more than a compliance adjustment, it challenges a core pillar of how cross-border e-commerce has operated for over a decade. Brands reliant on parcel fragmentation to avoid duties will now face rising costs, longer transit times, and intensified customs scrutiny.
What remains to be seen is how platform sellers and logistics intermediaries recalibrate. Past enforcement patterns suggest that when one compliance door closes, others open, often in the form of mislabeling, transshipment through low-tariff jurisdictions, or manipulating country-of-origin declarations. As trade enforcement ramps up, the real test for regulators will be ensuring that today’s compliance gains don’t become tomorrow’s blind spots.