The Trump administration is ending the de minimis exemption for packages entering the U.S., meaning customers buying directly from overseas sellers may soon face higher fees and delays.
The de minimis rule has allowed shipments valued under $800 to enter the U.S. duty-free. But as President Donald Trump ramps up tariff enforcement, that exemption will end for most countries on Friday. The administration already removed the benefit for shipments from China earlier this year.
Customs and Border Protection says the rule has become a pathway for narcotics and other illegal goods.
"The drug trafficking organizations use de minimis to import precursor chemicals, pill presses, and pill dies to manufacture counterfeit pharmaceuticals that would lead someone to believe that, ‘Oh, that’s just oxycodone,’ when, in fact, the pills were produced illicitly and laced with deadly amounts of fentanyl, xylazine, and nitazene compounds,” Andrew Renna, assistant port director for cargo operations at JFK Airport, said in a CBP article.
CBP estimates that 92% of all cargo shipments to the U.S. utilize this exemption. The Trump administration also contends it served as a loophole for avoiding tariffs. Although this particular rollback is happening under President Trump, the Biden administration had also proposed significantly reducing the threshold near the end of his presidency.
A small carve-out remains: personal gifts valued under $100 will still be allowed duty-free.
Impact on Etsy and TikTok sellers
E-commerce sellers using platforms like Etsy and TikTok could face the largest burdens under the new rules. Etsy recently advised vendors to use the Delivered Duty Paid option when shipping internationally. Sellers using Delivered Duty Unpaid or Delivered At Place risk having customers charged duties upon delivery.
Several carriers, including Australia Post, Canada Post, Evri, and Royal Mail, have temporarily suspended cargo shipments to the U.S. as they adjust their systems to comply with the new requirement.
