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In recent weeks, multiple shipping services have halted US imports, as de minimis exemptions expired on Aug. 29. The de minimis exemption applies to international imports valued at $800 or less from tariffs. This will impact small consumer orders, such as orders from international vendors through platforms such as Etsy, Shein, Temu, and others. Consumers who order from international distributors will begin seeing significant cost increases in their orders due to the de minimis exemptions.
On July 30, President Donald J. Trump signed an executive order that set the expiration date for duty-free imports of $800 or less. Imports will be tariffed at a minimum of 25%, meaning an item worth $800 will be tariffed at a minimum of $200. Letters and gifts worth less than $100 will remain duty-free.
“The duty-free de minimis exemption provided under 19 U.S.C. 1321(a)(2)(C) shall no longer apply to any shipment of articles not covered by 50 U.S.C. 1702(b), regardless of value, country of origin, mode of transportation, or method of entry,” reads the order. “Accordingly, all such shipments, except those sent through the international postal network, shall be subject to all applicable duties, taxes, fees, exactions, and charges.”
The de minimis exemptions were a loophole through which fentanyl, unvetted imports, and counterfeit goods entered the United States without the burden of duties, according to US Customs and Border Patrol.
“CBP is ready to enforce,” said Rodney Scott, commissioner of US Customs and Border Protection, in a press release. “For too long, this loophole handed criminal networks a free pass to flood America with fentanyl, fake goods, and illegal shipments. Those days are over. We are securing the border, restoring fairness to trade, and protecting American families.”
At least 25 countries have announced suspending shipments into the US, as de minimis exemptions have been suspended, according to news reports. Suspension of shipments will remain until there is clarity on how US authorities plan to implement the newly announced measures by the Trump administration.
“The general thesis is that what we see when we engage with customers is the challenge of the uncertainty,” Brandon Staton, CEO of Shipmint, told the Carolina Journal. “The smaller the business, the smaller the team, and the bigger the challenge of keeping their thumb on the pulse. We’ve had customers go out of business and faced significant volume declines; we’ve had wholly unaffected customers, but by and large, for those affected, cost is paramount for everyone. I think a lot of them feel like they’re in the dark relative to what they can do to circumnavigate this, given the relative obscurity until recently.”
Data from the UN’s Universal Postal Union (UPU) operators shows that postal traffic into the US fell by 81% on Aug. 29 compared to the previous week, reported NPR. The UPU added that it is developing measures to restore the flow of traffic into the country.
“In my industry, especially the international element, import-export in the United States is the most challenging. There are a lot of players in this space, whether they’re econ platforms, consulting companies, or technology solutions,” said Staton. “The complexity introduced by international shipments does not exist with domestic shipments, especially when there is a huge volume, a huge total addressable market of domestic volume.”
Many orders are still coming in. But since the new de minimis rule took effect, US customers have flooded social media with complaints about surprise bills from major shippers such as DHL, FedEx, and UPS — often without warning from the foreign merchants they ordered from, reported NBC News. In response, shipping companies are now fielding a wave of disputes and return-to-sender requests, as frustrated customers refuse deliveries rather than pay the unexpected charges.
“Given the complexities, legal requirements, and poor experience, many postal providers will be suspending delivery options to the US,” Etsy told NBC News.
Major US e-commerce hubs have begun alerting customers to potential shipping disruptions. Just last week, NBC News reported that Etsy announced it would stop processing orders shipped through Australia Post, Canada Post, and the United Kingdom’s Evri and Royal Mail, anticipating those carriers’ suspension of US deliveries.
Canada Post said in a statement that it will be onboarding a third-party technology provider to ensure that shipments “continue moving smoothly across the border,” according to news reports. For most goods, the duty will be 35%, which President Trump imposed on Canada earlier this year.
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