Starting August 29, 2025, the United States has permanently ended the tariff exemption for shipments valued at $800 or less, a policy known as the "de minimis" exemption that had been in place since 1938 and raised to $800 in 2016 to support growing e-commerce. This move means all international parcels entering the US, regardless of value, will now be subject to standard tariff rates or a flat fee during a six-month transition period.
The new regulations impose a flat fee ranging from $80 to $200 per package, depending on the country of origin’s reciprocal tariff rates, including China, Brazil, India, and Canada in the highest tariff bracket. After six months, tariffs will be assessed based on the declared value and country-specific tariff rates, which range between 10% and 50%. This change extends prior actions that removed the exemption specifically for shipments from China and Hong Kong earlier this year.
This policy shift aims to curb narcotics and illicit items entering the US while generating an estimated $10 billion annually in tariff revenue. However, it has resulted in major postal services in over 30 nations temporarily halting shipments to the US due to uncertainties around compliance and tariff assessments.
The elimination of this exemption will significantly affect small businesses, consumers, and e-commerce retailers by increasing costs and causing delays. Many sellers and logistics providers face new complexities in customs documentation and additional duties, potentially reducing product variety and raising prices for American consumers, particularly for niche and imported goods.
Retailers are adapting by redesigning pricing strategies and clarifying tariff impacts for customers. The U.S. government argues the change creates a fairer competitive landscape and reinforces supply chain security.
Key impacts to watch include increased shipping costs, longer delivery times, and adjustments by businesses navigating the changed tariff environment.