What will the end of the ‘de minimis’ rule mean for U.S. consumers?

For nearly a century, the “de minimis” trade exemption let people skip import fees for shipping small stuff. But after the U.S. raised its limit to $800, that small stuff became big business, driven by online shopping.

“We’re talking about 4 million de minimis packages being processed a day,” says Courtney Griffin of the Consumer Federation of America.

The de minimis rule also became increasingly contentious. Backers say it brings low prices to consumers. But critics say the rule hurts U.S. companies and allows unsafe or even illegal items to be imported without a close customs inspection.

Sweeping changes are arriving Friday, when President Trump’s executive order suspending the de minimis rule for all U.S. imports takes effect. The shift is already rippling around the world: From Asia to Europe, shipping services are pausing their deliveries to the U.S., saying they need time to figure out how to revamp their paperwork and payment processes.

So what will doing away with de minimis mean for consumers? Here’s a quick guide:

What is the de minimis rule?

De minimis is Latin, meaning something is “trifling or of little importance,” according to the U.S. International Trade Commission. Dating back to the Tariff Act of 1930, the rule has let people avoid paying import tariffs and taxes on items of small value and minimized customs processing, including inspections.

“It was never meant to be a commercial import route” in its first decades, says Lori Wallach, director of the Rethink Trade program at the American Economic Liberties Project, a nonprofit advocacy group.

The U.S. de minimis threshold used to be $200 — that is, packages worth $200 or less were not subject to taxes and tariffs. But in 2016, the country raised the threshold sharply to $800, one of the highest in the world. The spike came out of the Trade Facilitation and Trade Enforcement Act, signed by then-President Barack Obama.

Online retailers and express delivery companies backed the change, Wallach says.

“You were now sort of creating this loophole to all the normal customs rules, including the inspection,” Wallach says. The shift eased the way for the importation of products that would have otherwise faced hurdles, she says, from safety standards to endangered species laws and bans on forced labor.

After the 2016 shift, de minimis shipments started to dominate cargo entering the U.S. The number of such shipments grew from 140 million in 2014 to 1.36 billion in 2024, according to a January press release from Customs and Border Protection.

With numbers like that, policymakers started referring to the de minimis exemption as a loophole. The rule also inspired new business models for huge discount retailers like Temu and Shein, which used de minimis to ship ultra-cheap goods directly to Americans. Smaller retailers, like Etsy vendors based outside of the U.S., also got a boost.

Why are the changes making a splash?

Basically, Americans are “everyone’s favorite shopper,” according to Griffin of the Consumer Federation of America. “We buy a lot of stuff. And so it does mean it affects everyone as a result.”

U.S. consumers have enjoyed a flood of duty-free packages, but the de minimis system also has some serious risks, says Griffin, who is her organization’s director of consumer product safety.

“It’s created significant product safety concerns because low-value imports are facing minimal customs inspection, making it easier for unsafe or noncompliant product to enter the U.S. market,” she says.

Counterfeit and unsafe products that have reached U.S. consumers include bicycles, bike helmets and hoverboards, according to Wallach. Without de minimis, she adds, products will actually be inspected to make sure they’re genuine.

Beginning Friday, all products coming into the U.S. will be subject to duties and tariffs based on their origin, according to Customs and Border Protection.

The highest of Trump’s tariffs — 25% and up — apply to things like imported steel and automobiles. In contrast, Wallach says, “if you’re an Etsy crafter, it’s 10%, 15%” without the de minimis exception.

Why is Trump ending the de minimis exemption?

People who want to keep the de minimis rule say that it benefits U.S. consumers, in the form of low prices. But along with safety concerns, critics say it unfairly favors foreign companies. Earlier this year, President Trump called the exemption “a big scam.”

“It’s very important, de minimis. It’s a big deal,” Trump said in April. “It’s a big scam going on against our country, against really small businesses, and we’ve ended it. We put an end to it.”

Trump says suspending de minimis will help the U.S. lower its trade deficit, and make it harder to import illegal drugs like fentanyl.

An earlier suspension of the exception — in February — focused on China. But the newer executive order on de minimis is global, applying to every commercial package or shipment imported into the U.S., with a few exceptions. Letters aren’t affected, for example, and people can send gifts worth less than $100 to each other.

What do the changes mean for consumers?

When asked what advice she has for American shoppers, Griffin says to buy domestically when possible.

“This would be a route to avoid import fees, potential shipping delays,” she says.

People should be on the lookout for possible changes to retailers’ shipping and return policies, especially in the upcoming holiday season, Griffin says. She also says to look out for scammers, predicting they will try to profit off confusion over the new policy.

Wallach of the American Economic Liberties Project predicts there will be an adjustment period for businesses. But over time, she says, consumers will see benefits.

“Getting rid of de minimis will mean that packages get a more thorough inspection,” she says. “Now this will all go through normal channels, which is much better for consumers.”

How are other countries reacting?

With Trump’s new policy set to take effect on Friday, many international postal and shipping services are suspending delivery of some packages to the U.S. They’re trying to figure out two things: how to handle new paperwork for millions of packages, and how to collect money for duties and taxes.

“U.S. customs regulations hamper the shipping of goods to the USA,” Switzerland’s national carrier, Swiss Post, said this week. The agency says it will be temporarily unable to accept U.S.-bound goods, but document and express services would continue.

Other entities, from Japan Post to India’s Department of Posts, say they are also temporarily halting most shipments to the U.S.

About 100 countries have de minimis thresholds; the amounts differ around the world.

“Most countries have de minimis thresholds anywhere between $50 to $200,” Griffin says.

In the European Union, most shipments worth less than 150 euros (about $174) can qualify.

But the EU is contemplating making its own changes to de minimis, citing many of the same issues seen in the U.S. A recent research paper found that the EU has seen its annual number of e-commerce parcels — mostly low-value goods from companies like Temu — nearly double from a year ago, to about 4.6 billion.