The United States has ended its long-standing tariff exemption on low-value imports, a policy shift that could raise costs for millions of online shoppers and small businesses that rely on foreign suppliers. The exemption, often called the de minimis rule, allowed goods valued under $800 to enter the country duty-free.
The change, announced Friday, is part of a broader economic push to reduce reliance on foreign goods and boost domestic manufacturing.
Impact on consumers and businesses
For years, the de minimis threshold helped keep costs low for consumers purchasing inexpensive goods from international e-commerce platforms such as Shein, Temu, and AliExpress. It also allowed small U.S. businesses to source affordable parts and products from abroad without facing hefty customs duties.
With the exemption removed, those low-cost purchases will now face tariffs and additional customs processing. Industry analysts say the change could raise prices on everyday goods, from clothing to small electronics, potentially slowing demand for fast-fashion and discount imports.
Government rationale
Administration officials argue the decision is necessary to strengthen U.S. supply chains and create a fairer playing field for domestic manufacturers. They contend that foreign companies have long exploited the de minimis threshold to flood the U.S. market with duty-free goods while American producers faced steep export tariffs abroad.
The U.S. Trade Representative’s office has said the new rules will prevent “systematic abuse of trade loopholes” and “ensure accountability in cross-border commerce.” Officials also noted that the exemption had been increasingly used by large foreign e-commerce retailers, rather than the small-scale shoppers it was originally intended to benefit.
Customs enforcement
The U.S. Customs and Border Protection (CBP) will oversee enforcement of the new policy, meaning all imports—regardless of value—are now subject to the same inspection and duty requirements. The CBP has warned that delays in processing may occur initially as the system adjusts to the higher volume of low-value shipments requiring tariff assessment.
Experts say the rule could significantly increase CBP’s workload. In 2023, the agency processed more than 1 billion low-value packages under the de minimis exemption.
Potential challenges
Critics argue the move will disproportionately affect low-income consumers who depend on low-cost imports and small businesses that cannot afford bulk domestic sourcing. Some trade groups warn that raising prices on inexpensive imports could also contribute to inflationary pressures.
“Removing the de minimis rule is essentially a hidden tax on working families,” said a spokesperson for an e-commerce trade coalition. “It’s going to raise the cost of everyday goods without necessarily creating more U.S. jobs.”
International response
The policy change has also drawn concern from major trading partners. China, whose fast-growing e-commerce platforms have become increasingly popular among U.S. shoppers, has warned that the removal of the exemption could spark new trade tensions.
European Union officials are monitoring the situation closely as well, noting that the U.S. is moving toward more protectionist measures even as global supply chains remain under strain.
Looking ahead
While the immediate impact will be felt by online shoppers and small businesses, the long-term effects on trade remain unclear. Supporters of the policy say it could help encourage domestic production and reduce America’s trade deficit, while opponents caution it could trigger retaliatory tariffs and higher prices across multiple industries.
Consumers may notice the changes as soon as their next online order arrives. Items that once sailed through customs may now include a duty fee, adding time and cost to what had become a seamless global shopping experience.