On July 30, 2025, United States (U.S.) President Donald Trump signed an executive order that ends duty-free de minimis treatment for all countries, effective August 29, 2025, marking a major shift in U.S. trade policy, especially for e-commerce and low-value imports.

Under the executive order, packages valued at or under US$800 sent to the U.S. outside of the international postal network will now face "all applicable duties". All such imports will be subject to duties—either based on their country's tariff rate or via a temporary flat fee of US$80–US$200 per item.

Exceptions apply only to personal-use goods under US$200 and gifts under US$100.

The de minimis exemption has earlier allowed low-value parcels—typically under US$800—to enter the U.S. without duties, fueling a surge in e-commerce imports, particularly for Chinese behemoths Temu and Shein.

The Trump administration had previously eliminated the de minimis exemption, citing national security concerns, rampant opioid trafficking, widespread abuse of the exemption to ship counterfeit and unsafe goods with minimal oversight, as well as unfair trade practices.

According to federal data cited by the White House, over 97% of intellectual property violations and 98% of narcotics seizures were linked to de minimis shipments in FY2024. 

Flexport said in a separate report that these changes have "key implications" for supply chain operations, including a "full ad valorem IEEPA tariffs" to be applied based on the country of origin six months after the imposition of US$80-US$200 per item duty.

It noted that low-value goods shipped through means other than the international postal system will also be subject to all applicable duties immediately.

"We recognize that these changes are coming right ahead of the holiday peak season, and will significantly impact import timelines, customs clearance, landed costs, and sourcing strategies," Flexport added.

The latest executive order builds on an earlier move from May 2, 2025, when the U.S. suspended de minimis exemptions specifically for shipments originating from China and Hong Kong in response to the overwhelming volume of low-cost goods entering the country from those regions.

At the time, the White House described the exemption as a “catastrophic loophole” and emphasized that China and Hong Kong accounted for the majority of de minimis shipments to the country.