US Ends Tariff Exemption on Low-Value Packages, Raising Costs for Shippers and Consumers

Washington, August 29, 2025: The United States has officially ended its tariff exemption for packages valued under $800, a move expected to increase costs for e-commerce companies, small businesses, and consumers.

The change took effect at 12:01 a.m. Friday, with U.S. Customs and Border Protection (CBP) now collecting full duty rates on all imported parcels, regardless of value or country of origin. For the next six months, a temporary flat-rate duty of $80 to $200 per package will apply to shipments routed through foreign postal agencies.

The exemption, known as the de minimis rule, had been in place since 1938 and was last raised to $800 in 2015 to support small businesses and online trade. But the surge in direct shipments from platforms like Shein and Temu, particularly after tariffs on Chinese goods increased, prompted the policy shift.

White House officials said the move will generate up to $10 billion annually in tariff revenues and reduce the inflow of narcotics and banned items. Trade groups such as the National Coalition of Textile Organizations welcomed the decision, calling it a “historic win” for U.S. manufacturers competing with low-cost imports.

Analysts warn, however, that the change will likely raise e-commerce prices, add customs paperwork, and disrupt supply chains for companies dependent on cross-border sales. Express carriers like FedEx, UPS, and DHL are expected to adapt faster than traditional postal services.

CBP data shows shipments using the de minimis exemption jumped from 139 million in 2015 to 1.36 billion in 2024, averaging nearly 4 million packages a day. By February 2026, postal agencies will be required to fully transition to value-based duty collection.