---
title: 'De Minimis No More: Closed Tariff Loophole Could Lead to Shipping Delays, Higher Fees'
description: President Donald Trump has ended the de minimis exemption for low-value shipments, and U.S. consumers are about to feel the impact.
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editors:
  - name: Julia Glum
    role: Managing Editor
    url: https://money.com/author/julia-glum/
    bio: Julia Glum joined Money in 2018 and specializes in covering financial trends that affect everyday Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money.
    education: University of Florida
    at_money_since: 2018
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      - Identity Theft
      - Insurance
      - Investing
      - Lifestyle
      - Loans
      - Mortgages
      - Personal Finance
      - Professional Services
      - Retirement
      - Shopping
      - Taxes
      - Technology
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      - International Business Times
      - CBS News
      - Good Morning America
      - WUSA9
      - Pix 11
      - The New York Times
      - Mashable
      - The Washington Post
      - CNBC
      - Politico
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published: '2025-08-29T17:21:47.000Z'
modified: '2025-08-29T18:17:30.000Z'
section: Economy and Politics
tags:
  - News
word_count: 610
canonical: https://money.com/de-minimis-exemption-shopping-effects/
type: NewsArticle
source: structured-blocks
---

> **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/).

![Photo illustration of multiple cranes Hoisting Shipping Containers in American Flag Colors, with percentage signs in the background](https://img.money.com/2025/08/News-Exports-Loophole-Change.jpg)

Millions of low-value shipments are sent to the U.S. each day, and until now, packages shipped to consumers valued under $800 have been exempt from President Donald Trump's tariffs.

That changed Friday. The de minimis exemption for these shipments has officially ended, and consumers are about to feel the impact.

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Companies including Temu and [Shein](https://money.com/is-shein-legit/) have used this exemption — or "loophole," as critics call it — to grow their businesses selling super-cheap apparel, electronics and home goods. They evaded levies shipping items directly to American shoppers, undercutting many U.S. retailers.

In July, however, Trump signed an [executive order](https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-is-protecting-the-united-states-national-security-and-economy-by-suspending-the-de-minimis-exemption-for-commercial-shipments-globally/) suspending the de minimis exemption. (The Latin phrase "de minimis" translates to "of little importance.") The exemption has allowed for duty-free imports of low-value shipments since the 1930s. For the past nine years, the exemption has applied to packages with retail value under $800.

Trump's executive order states that these items will now be subject to duties, taxes and fees, which can [range](https://apnews.com/article/de-minimis-exemption-ends-august-29-edc26b9f0d7935ad7978c7eba5e3967c) from 10% to 50% depending on the country of origin. For low-value packages, the tariff fee will now be charged at the same rate as the overall U.S. tariff rate for that country. There's also a temporary option to pay flat duties of $80, $160 or $200 per package, depending on country-specific tariff rates.

Here's what consumers need to know about the end of the de minimis exemption, which has shielded inexpensive items from tariffs for many decades.

## Are package shipments paused?

A list of countries including Canada, Germany, Mexico and Japan have announced pauses for affected package shipments to the U.S. while the situation unfolds. The government of Mexico said its measure [would be in effect](https://www.gob.mx/sre/prensa/suspension-temporal-en-el-envio-de-paquetes-a-estados-unidos) "while new operational processes are defined."

Shipping companies are also reporting disruptions. In an Aug. 22 [statement](https://group.dhl.com/content/dam/deutschepostdhl/en/media-relations/press-releases/2025/pr-us-customs-20250822.pdf) announcing temporary shipping restrictions, DHL said that "key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out."

## What's happening with packages from China?

Trump ended the de minimis exemption for China earlier, back in May. That move had immediate impact, with Temu announcing at the time that it was changing fulfillment strategies to mitigate impacts. The online marketplace, known for ultra-cheap goods, is currently advertising "no import charges" for "local warehouse items," which means orders are fulfilled from existing stockpiles in the U.S.

However, Temu's U.S. sales fell nearly in half in the aftermath of the de minimis change, according to [Reuters](https://www.reuters.com/business/retail-consumer/retailer-temus-daily-us-users-halve-following-end-de-minimis-loophole-2025-06-02/). In the spring, Shein's U.S. sales similarly slumped as its prices went up. Other platforms, like TikTok Shop and AliExpress, were also impacted.

## How does the end of the de minimis exemption affect me?

The end of the exemption for China and Hong Kong was notable, as they accounted for [about 60%](https://apnews.com/article/de-minimis-exemption-end-date-dutyfree-48862fc5b6a563a077284e364fb14f08) of de minimis shipments in 2024. Now, the de minimis exemption is suspended for all countries, broadening the impact.

Sites like Etsy and eBay are expected to be hit hard as sellers (and their shoppers) around the world face additional tariff costs, according to [stock market analysts](https://www.morningstar.com/news/marketwatch/20250829194/trump-closes-the-de-minimis-shipping-loophole-etsy-and-ebay-shares-have-tumbled). This also means that individuals sending gifts or mail to family, friends or other foreign addresses will be subject to duties. However, an exemption for gifts worth less than $100 remains in place, meaning you can still send a book or a coffee mug to a relative without fees.

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