A sudden policy change is creating ripple effects across global e-commerce, with the United States eliminating its long-standing duty-free threshold for packages valued under $800. This move threatens to upend business models built around low-cost imports and reshape consumer shopping habits.
I. Policy Background: The End of De Minimis Exemption
The U.S. Customs' "De Minimis" provision, which exempted imported goods valued below $800 from tariffs, was originally implemented to streamline customs procedures and reduce administrative costs. On July 30, 2025, the Trump administration signed an executive order terminating this exemption, effective August 29. All inbound packages will now be subject to one of two tariff structures:
- Ad valorem duties: Based on the product's declared value and the applicable tariff rate from its country of origin
- Flat-rate tariffs: $80 for items with tariff rates below 16%, $160 for 16%-25% rates, and $200 for rates exceeding 25%
II. Global Logistics in Crisis
The abrupt policy shift has created chaos in international shipping networks. With implementation details still unclear, at least 17 national postal services—including those of Germany, France, Canada, and South Korea—announced temporary suspensions of U.S.-bound shipments in late August. Major carriers like DHL and Royal Mail have paused certain services while developing new tariff calculation systems.
III. Impact Assessment
Online Sellers: Platforms like SHEIN, Temu, and TikTok Shop that rely heavily on low-price strategies face existential challenges. Many small businesses specializing in handmade goods, apparel, and jewelry report suspending U.S. operations entirely.
American Consumers: The era of tax-free international online shopping is ending, with tariff costs expected to be passed through as higher retail prices—potentially reducing demand for imported goods by 20-40% according to preliminary estimates.
IV. Strategic Adaptations
E-commerce operators are pursuing several mitigation strategies:
- Product portfolio restructuring: Phasing out low-margin items (particularly those under $20) in favor of premium, differentiated merchandise
- Supply chain redesign: Expanding U.S. warehouse networks and adopting "semi-hosted" fulfillment models to bypass individual package customs clearance
- Market diversification: Reducing U.S. dependence by expanding into Europe and Southeast Asia
- Compliance enhancement: Strengthening customs documentation and valuation practices
V. The New E-Commerce Reality
This policy change represents just the beginning of a broader transformation in global trade rules. Cross-border sellers must now prioritize compliance, brand value, and operational flexibility to survive in an increasingly complex regulatory environment. With U.S. trade policies remaining volatile, continuous monitoring and rapid adaptation will become essential competencies for international e-commerce businesses.