De Minimis Ends: New Tariffs in U.S. Trade

The long-standing “de minimis” exemption in the United States, which allowed individual consumers to import low-value goods without paying customs duties, officially ended on August 29, 2025. This regulation particularly affects low-value shipments from countries like China. From now on, even a $1 item will be subject to customs duties. Cards are being reshuffled for both consumers and international small businesses.

Under the new system implemented by U.S. Customs and Border Protection (CBP), all imported goods must be declared and any applicable duties must be paid. This step is linked to the rapid growth of China-based e-commerce platforms in the U.S. market in recent years and the resulting tax revenue losses.

According to Reuters, over 1.36 billion packages entered the U.S. under the “de minimis” exemption in 2024 alone. The vast majority of these packages came from Chinese platforms such as Temu, AliExpress, and Shein (Reuters, August 29, 2025). These companies were able to sell low-priced products to the U.S. without paying any customs duties, weakening domestic producers’ competitiveness and reducing government tax revenues, as well as allowing uncontrolled product entry.

Security Concerns and Illegal Trade Played a Role

According to the Financial Times, the U.S. government’s decision was motivated not only by economic reasons but also by security concerns. In recent years, fentanyl and other dangerous substances have been detected in low-value packages, especially those originating from China, sparking serious public concern (Financial Times, August 2025).

Initially, restrictions targeted shipments from China and Hong Kong. However, the decision was soon extended to cover all countries. The U.S. administration argued that the policy should not be China-specific but globally applicable to maintain fair trade principles.

What Consumers Can Expect

For millions of U.S. consumers shopping online from abroad, this regulation means significant changes. Small products that previously entered duty-free will now be taxed at rates varying between 10% and 50%, depending on the product type and country of origin.

Platforms like Shein and Temu, which gained significant market share in the U.S. by selling low-cost clothing, accessories, and home goods, will now have to factor these tariffs into their pricing. Consumers shopping on these platforms will need to pay duties either at checkout or upon delivery. Shipping times may also increase due to extended customs processing.

Impact on Small Businesses

Not only consumers but also small exporters will be affected. Entrepreneurs selling products overseas through platforms such as Etsy, eBay, and Amazon must now prepare customs declarations for every shipment, calculate tariffs, and manage additional logistics. This creates a significant operational burden, especially for small-scale sellers.

For SMEs exporting to the U.S. from countries like Turkey, India, or Eastern Europe, this process will be both costly and time-consuming. Some businesses plan to withdraw from the U.S. market or rely on third-party logistics providers to manage shipments.

International Postal Services Temporarily Suspend Shipments

The rapid implementation of the new rules caught some national postal services unprepared. Australia Post, India Post, Royal Mail, and several European postal operators announced temporary halts or restructurings of shipments to the U.S.

According to AP News, the Universal Postal Union (UPU) warned that this sudden change is straining the international logistics system, potentially causing delays in developing countries’ shipments (AP News, August 2025).

U.S. Government Seeks Temporary Solutions

The U.S. Treasury Department plans to introduce a fixed-rate tariff system during a six-month transition period for certain large platforms that meet compliance standards. However, this relief will not extend to small or independent sellers.

Domestic Producers Welcome the Change, Retail Giants Adjust

The National Retail Federation (NRF) has welcomed the change, stating that duty-free imports of low-cost products from abroad have created unfair price competition for U.S. manufacturers.

Retail giants such as Walmart, Target, and Costco, which already pay import tariffs, are expected to be less affected by the change. These companies may even benefit from reduced pressure from low-priced competitors.

A New Era in Trade Policy

Experts believe the U.S. decision to end the “de minimis” exemption could trigger similar actions in global trade policies. Canada, the European Union, and some South American countries are reportedly considering comparable regulations to close tax loopholes in low-value shipments.

This decision may set an example at a time when the rules of digital commerce are being rewritten and national tax policies must align with e-commerce realities.

Advice for Consumers

Consumers need to act cautiously under the new system. Choosing platforms that provide “duties included” pricing, verifying total costs before ordering, and understanding customs procedures are essential.

Also, considering possible shipping delays, buying from local suppliers for urgent needs becomes a safer option.