The ‘de minimis’ import tax exemption was a key driver for home delivery and the growth of e-commerce in the US.
Published On 29 Aug 2025
The US has stopped tariff exemptions for small delivery packages valued at $800 or less, closing a loophole that previously allowed over a billion packages into the US without customs duties annually.
This change will take effect in the US on Friday and is followed by a six-month transition to a new tariff system.
Over 30 countries, including Australia, Germany, Japan, and Mexico, have either suspended or partially suspended package shipments to the US ahead of this cost alteration.
Postal unions worldwide are calling for clearer guidelines on how the new tariff will be computed before resuming shipments to the US.
DHL, a global logistics provider, has announced that it won’t send standard business parcels to the US until there’s clarity on “how and by whom customs duties will be collected in the future,” and “how data transmission to US Customs and Border Protection will be carried out.”
As per a White House fact sheet from July 30, starting August 29, tariff rates on small packages will be determined in two ways. The first option involves a flat rate ranging from $80 to $200 per item, depending on the country of origin. The second option is based on package value and “reciprocal” tariff rates set by the White House for individual countries.
The flat tariff rate is available only for the next six months, after which a 10 to 40% tariff will apply for most countries.
The White House has set “reciprocal” tariff rates for most trading partners, with ongoing negotiations with key partners like Mexico and China.
The Trump administration argues that tariffs are necessary to reduce the US trade deficit and claims ending the “de minimis exemption” will help curb the international mail trafficking of narcotics.
Established in the 1930s, the de minimis exemption was raised from $200 to $800 in 2015, making it a game-changer for international e-commerce by allowing retailers to ship directly to customers.
Since then, the number of packages crossing the US border each year has increased from 129 million to 1.36 billion, according to US customs data.
This exemption also benefited Chinese e-commerce giants such as Shein and Temu, allowing them to dodge tariffs imposed on Chinese goods during Trump’s first term in office.
This change will take effect in the US on Friday and is followed by a six-month transition to a new tariff system.
Over 30 countries, including Australia, Germany, Japan, and Mexico, have either suspended or partially suspended package shipments to the US ahead of this cost alteration.
Postal unions worldwide are calling for clearer guidelines on how the new tariff will be computed before resuming shipments to the US.
DHL, a global logistics provider, has announced that it won’t send standard business parcels to the US until there’s clarity on “how and by whom customs duties will be collected in the future,” and “how data transmission to US Customs and Border Protection will be carried out.”
As per a White House fact sheet from July 30, starting August 29, tariff rates on small packages will be determined in two ways. The first option involves a flat rate ranging from $80 to $200 per item, depending on the country of origin. The second option is based on package value and “reciprocal” tariff rates set by the White House for individual countries.
The flat tariff rate is available only for the next six months, after which a 10 to 40% tariff will apply for most countries.
The White House has set “reciprocal” tariff rates for most trading partners, with ongoing negotiations with key partners like Mexico and China.
The Trump administration argues that tariffs are necessary to reduce the US trade deficit and claims ending the “de minimis exemption” will help curb the international mail trafficking of narcotics.
Established in the 1930s, the de minimis exemption was raised from $200 to $800 in 2015, making it a game-changer for international e-commerce by allowing retailers to ship directly to customers.
Since then, the number of packages crossing the US border each year has increased from 129 million to 1.36 billion, according to US customs data.
This exemption also benefited Chinese e-commerce giants such as Shein and Temu, allowing them to dodge tariffs imposed on Chinese goods during Trump’s first term in office.
