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'De Minimis' Tariff Loophole Ends. What Does It Mean for Consumers?
The removal of the $800 duty-free threshold aims to curb illegal imports and is expected to increase costs for small businesses and consumers, impacting millions of shipments daily, US Customs said.
- On Friday, August 29, 2025, the Trump administration suspended the de minimis exemption, ending duty-free entry for parcels valued at $800 or less at 12:01 a.m.
- The White House justified the decision by saying the de minimis threshold, raised to $800 in 2016, had been exploited to evade tariffs and smuggle fentanyl and other prohibited items.
- U.S. Customs and Border Protection highlighted the scale, noting 1.36 billion de minimis shipments in fiscal 2024 and over 4 million daily parcels; packages face value-based tariffs or specific duties of $80, $160, or $200 with a six-month flat-duty option.
- Postal services in around 30 countries paused U.S. shipments, disrupting flows, while independent and small sellers outside the U.S. face steep costs and halted sales; Tapestry expects a $160m profit hit this month.
- If you're shopping online, check where an item ships from and use eBay and Etsy filters to avoid surprise duties, while advocates urge contacting senators and congressional representatives to restore exemptions at $200 or $100; books remain exempt for now.
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cascadepbs.orgWhat consumers can expect as de minimis exemption ends
Americans are no longer able to import cheap foreign goods tariff-free. The Trump administration ended the de minimis exemption, which allowed packages valued under $800 to enter the U.S. with no import tax. Last year, there were nearly four million such packages a day. Amna Nawaz discussed the latest with Clark Packard. He is a trade expert at the libertarian Cato Institute.
·Washington, United States
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Total News Sources70
Leaning Left11Leaning Right4Center19Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 32%
C 56%
12%
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