Starting tomorrow, Aug. 29, one of the biggest changes to hit online shopping in decades takes effect across the United States. President Donald Trump’s administration officially terminated the decades-old “de minimis” exemption, eliminating duty-free treatment for low-value imports that has served as the backbone of international e-commerce for nearly a decade.
The de minimis rule, established in 1938 with a $1 threshold and raised to $800 in 2016, had allowed low-value packages to enter the United States without duties, taxes, or extensive customs scrutiny. The exemption was originally designed to reduce administrative burden on customs agencies and streamline small-scale trade, but its scope had expanded dramatically with the rise of e-commerce.
The change will hit hardest on products that are commonly imported in small quantities:
- Clothing and accessories (shoes, bags, belts, jewelry)
- Beauty and cosmetics products
- Household items and home decor
- Electronics and gadgets
- Toys and recreational items
- Custom or specialty products from international sellers
When American consumers order something internationally now, they’ll pay additional fees on top of the product price because of the tariffs Trump has placed on imports.
For packages shipped by companies like FedEx, UPS, or DHL:
- You’ll pay the full tariff rate based on what country the item comes from
- Tariff rates range from 5% to 50% depending on the product and country
For packages shipped through regular mail:
- You can choose between paying a percentage-based tariff or a flat fee
- Flat fees range from $80 to $200 per package (this option only lasts 6 months)
- The percentage option varies by country but can add 15% or more to your total cost
Over 25 countries have already suspended mail service to the United States because their postal systems can’t figure out how to handle the new tax requirements. Countries that have stopped shipping packages include:
- Europe: Austria, Belgium, Denmark, France, Germany, Italy, Norway, Spain, Sweden, Switzerland, UK
- Asia: Japan, South Korea, Singapore, Thailand
- Other regions: Australia, New Zealand
Major discount platforms like Shein and Temu already faced these changes earlier in 2025 when the exemption ended for China in May. Now companies like Amazon, Etsy, Shopify, Tik Tok, Instagram and many specialty stores will be affected.
The Trump administration argued that the old system was being abused, with over 90% of all packages entering the US using the exemption to avoid paying proper taxes. But those taxes are not paid by the importing country, but rather by American businesses and ultimately American consumers.
Because of the Trump Administration’s change, American consumers can expect items priced at 20-60% more and shipping delays as customs processes more packages.
