The U.S. is set to end the de minimis exemption on August 29, 2025

The U.S. is set to end the de minimis exemption on August 29, 2025, eliminating the duty- and tax-free entry of imports under $800. Originally slated to end in 2027, the policy shift was accelerated to address drug trafficking and tariff avoidance.

This change creates immediate challenges for e-commerce importers, especially those reliant on low-cost cross-border shipments during the holiday peak season. Without the exemption, importers face higher costs from tariffs and duties, alongside potential customs delays due to stricter entry requirements. Experts warn that consumers may balk at added fees, forcing retailers to rethink fulfillment strategies.

Many brands are expected to shift toward bulk importing into U.S. warehouses rather than shipping individual parcels across borders. While this approach could lower long-term costs, it requires larger inventory investments and more complex planning to avoid unsold stock.

Short term, importers are scrambling to adjust—consolidating shipments, exploring U.S.-based 3PLs, and running tariff-inclusive cost simulations to identify the best path forward. Long term, the elimination of de minimis is likely to reshape global e-commerce flows, tilting toward bulk shipping and U.S.-centered fulfillment network