END OF DE MINIMIS EXEMPTION: All You Need to Know About the Newly Implemented Tariff Policy. (5 Minutes Read).
Online shopping, especially for US shoppers has experienced a significant change, following the removal of duty-free status (a.k.a. de minimis exemption) for low-value trade. This means all shipments coming into the USA regardless of value would now be subject to applicable duties determined by the US government.
This article explains what the De Minimis Exemption is, and answers pertinent questions about what this change means for US-based online shoppers.
What is De Minimis Exemption?
The De minimis exemption was introduced in 1938 to avoid the cost of collecting tariffs on low value shipments. Over the years, the threshold has risen — from $200 in 1994 to $800 in 2016. This meant that if a shipment entering the U.S. was valued at $800 or less, no customs duty or tax was charged.
When was this Tariff Exemption Suspended in the US?
Starting August 29, 2025, about 92% of all U.S. cargo shipments, and up to 4 million packages daily, lost their duty-free status with President Donald Trump’s removal of the de minimis exemption for low-value trade. This applies to all countries, meaning that all shipments, regardless of their value or country of origin, are now subject to all applicable duties and taxes.
What does this suspension mean for U.S. Online shoppers?
For an online shopper based in the US, this means that all imported goods — regardless of value and origin — would be subject to customs duties and taxes. This means even a $20 T-shirt ordered from overseas could face extra charges at the border.
This change may also lead to higher prices within the U.S., since many businesses source products or raw materials internationally. Additionally, shipments may experience delays due to increased customs clearance procedures.
What if I already paid shipping fees?
If you already paid shipping fees, that only covers the cost of moving your package from the seller to your door. Import duties and taxes are separate government charges collected by U.S. Customs once your package arrives in the U.S. — so even with shipping paid, you’ll still need to pay duties or taxes before your order is released under the new policy which took effect on the 29th of August 2025.
Are De minimis Exemption or Import Tariffs Only Applicable in the US?
No. The de minimis thresholds vary by country. Although this is a new change for U.S. shoppers, many other countries already impose duties and taxes on low-value imports. Many other countries — like the U.S. now — have no de minimis exemption at all. Below are examples of different countries/regions de minimis thresholds.
- Canada: CAD $20
- Nigeria: No de minimis exemption.
- Australia: AUD $1,000
- European Union: ~€150 (varies by country; VAT applies on all imports)
- U.S. (before Aug 29, 2025): $800.
Author: Olarsgrace Business Team.
