The U.S. is ending a long-standing trade policy that allowed most low-cost imports to be exempt from paying tariffs. The move could mean that cheap goods from overseas will become more expensive.
A new executive order from Donald Trump will end the so-called de minimis rule for all packages valued under $800. Starting Aug. 29, all shipments—no matter where they’re from or how little they’re worth—will face duties.
The move builds on a change from May. Then, the U.S. ended the exemption for packages from China and Hong Kong. Now it applies worldwide.
This closes a big loophole. The policy had allowed companies—mostly Chinese platforms like Temu and Shein—to send millions of small packages into the U.S. tariff-free.
American companies weren’t happy. Retailers and manufacturers said it gave foreign sellers an unfair advantage. They couldn’t compete on price.
“Today’s executive order is a game changer,” said Kim Glas, who runs the National Council of Textile Organizations.
Cheap, fast online shopping fueled the problem. In 2016, Congress raised the de minimis threshold to $800. That change helped open the floodgates.
Now, millions of packages pour in each day. Customs officials say they process over 4 million de minimis shipments daily. More than 309 million arrived in the first half of 2025 alone.
The White House says the change is about fairness. Officials say the order closes a “catastrophic loophole” and protects American workers.
Online giants are feeling the impact. Temu and Shein may need to overhaul their business models. Temu has already paused shipments to the U.S. from China.
Shipping and e-commerce firms are worried, too. UPS said daily volumes dropped more than 30% this summer. eBay warned investors that the change could hit revenue.
Supporters say it’s overdue. Groups like the Alliance for American Manufacturing say foreign companies abused the rule for too long.
Critics say it could backfire. Analysts like Clark Packard from the Cato Institute warn that the change could raise prices and slow down small-package delivery.
A policy originally meant to save time at the border became a huge backdoor for cheap imports. Now it’s closing in less than a month
—Austin Alonzo
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