"De minimis" tax exemption on overseas packages ends today - National & International News - FRI 29Aug2025 -

“De minimis” tax exemption on overseas packages ends today. Price increases will mostly impact individual consumers and small businesses.

“De minimis” tax exemption on overseas packages ends today

Since 2015, American consumers purchasing items from abroad worth less than $800 were able to receive those shipments without worrying about customs duties or tariffs. This so-called “de minimis” exemption ends today by order of President Donald Trump. This will not affect large US retailers who place bulk orders and are already paying the higher duties. Instead, the end of this duty-free status will largely impact individual consumers and small businesses who purchase items they need for the business from abroad. The end of the exemption will disproportionately affect low-income Americans, and consequently it is viewed as a regressive tax on the poor.

Last year, Americans received over $64 billion in de minimis shipments from abroad. Shipments from China and Hong Kong made up about 60% of this figure, much of it through popular online retailers like Shein and Temu. US tariffs on China currently stand at 30%. That means that if you purchase $200 worth of items through Temu, your shipment will now cost $260, not including applicable shipping and processing fees. Only gifts and personal items under $100 will remain exempt from duties.

Trump touted ending the de minimis exemption as a way to boost American manufacturing and help them compete against foreign manufacturers. But even with these increased fees, many comparable items manufactured in the US will still cost so much more than Chinese-made goods that many customers will still favor purchasing items from abroad. They will just cost more than they used to.

In addition to higher prices, customers and small businesses purchasing items from abroad can expect delays for the next several weeks. Several large foreign companies, and even the postal services in some countries, have paused shipments to the United States while they determine how to apply these tariffs going forward.