The Trump administration just stripped international shippers of a rule exempting them from paying import fees for some U.S.-bound goods of lesser value.
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Now, international goods that were previously exempt under the de minimis rule will be subject to import regulations and fees — including tariffs.
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De minimis explained
Cornell Law School says de minimis is “something that is very trifling or of little importance” and is typically “so small” — in money or importance — that the “law will not consider it.”
In 1938, Congress amended the Tariff Act of 1930 to waive or reduce taxes on some imported goods valued $1 or less, a Congressional report said. Since then, Congress has raised that limit many times until ultimately raising it to its latest threshold of $800 in 2015.
This meant that imported goods valued less than $800 were not subject to certain import fees.
But as of Friday, that rule is over.
Under President Donald Trump’s executive order from July 30, goods valued under $800 will no longer be able to enter the U.S. duty-free starting Aug. 29.
Shipments under the de minimis rule made up 92% of all cargo entering the country, U.S. Customs and Border Protection said in a post.
CBP said it processes about 4 million de minimis packages a day.
Some critics of the de minimis rule say it lets items enter the U.S. without proper inspection and hurts domestic business. Proponents point out how it enables shoppers buy at lower prices, NPR reported.
CBP said some use the rule as a means to bring in “counterfeits,” “narcotics,” and “other illicit goods,” including materials used to make fentanyl.
The Trump administration has echoed these claims, with Trump calling the practice a “big scam” and “deceptive.”
New shipment rules
As de minimis comes to an end, postal shipments under the former rule will be subject to the item’s country of origin’s tariff rate.
In April, Trump set into motion his global trade war by slapping higher tariffs on countries around the world. On Aug. 7, he set new tariff rates for nearly 70 countries that range from a starting threshold of 10% to a steep 50%.
Trump said in his executive order that for six months, transportation carriers can opt for a set duty price per item based on the country’s tariff rate. For example, if a country has a rate less than 16% then the package will incur a $80 fee. For countries with rates above 25% — like Brazil, China, and India — packages will incur a $200 fee.
CBP said that carriers must use the same duty collection method for all postal shipments and can only change methods once per month when they give 24 hours notice.
Letters and other forms of communication as well as donations, gifts valued less than $100, and items brought back by U.S. travelers that are worth $200 or less are exempt from this change and can still enter the U.S. duty-free.
Ripple effect
Businesses that use third-party sellers or typically sell goods of lesser value that are shipped into the U.S., such as Temu, Shein, and Ebay, are bound to be shaken up by this change.
One company that is likely to be impacted is Etsy, an online marketplace where sellers offer goods from all over the world. In 2024, Etsy said sellers sold $10.9 billion in goods. It said almost 30% of sellers “export their goods outside their home country.”
After Trump announced his global tariffs in April, Etsy’s CEO Josh Silverman said in a statement that the company remains “committed to delivering a seamless experience” as trade policies shift.
Silverman went on to say that Etsy knows people are “increasingly interested in shopping domestically.” He said the company is “uniquely positioned” to help buyers, adding that in the U.S. more than 60 million items can ship domestically.
The online marketplace posted a guide for sellers to navigate tariffs on Thursday, giving recommendations like using shipping options that let sellers pre-pay import fees.
However, it said that “given the complexities” many postal services are updating their shipment options to the U.S., and in response Etsy is suspending shipping labels for Australia Post, Canada Post, Evri, and Royal Mail for U.S.-bound shipments.
As countries and logistics companies also navigate these new regulations — which many said were unclear and undefined — numerous shippers are pulling U.S. bound shipments altogether.
Swiss Post said that starting Aug. 26 it will “temporarily” not accept postal goods meant for the U.S. However, it said document and express shipments to the U.S. “are still possible.”
Japan Post said starting Aug. 27 it’s temporarily suspending shipments to the U.S. excluding the explicit exceptions defined under the rule change.
It added that due to CBP guidelines for transport and postal operators that are “not clear,” U-Global Express (an international delivery service) will handle shipments to the U.S. that comply with the new regulations.
India’s postal service, the Department of Posts, is also temporarily suspending shipments to the U.S. starting Aug. 25 with similar exemptions. It said U.S. bound air carriers said they can’t transport shipments because they aren’t ready to meet CBP’s rules.
Royal Mail, the United Kingdom’s postal service, is using a postal delivery duties paid (PDDP) service which it said meets new export requirements from the U.S.
It said goods shipped using this service will have duties calculated “according to the country tariff for the item’s country of origin (where an item was made).”
CBP said 88% of de minimis shipments come through international mail, including through express courier services like DHL, FedEx, and UPS.
DHL Group, the world’s leading logistic company according to its website, said it’s no longer accepting packages bound for the U.S. for its two brands, Deutsche Post and DHL Parcel Germany. Its DHL Express service is still available to customers.
The logistics company told Quartz that it has “prepared accordingly” for changes in trade policy.
“DHL is well-positioned to deal with the evolving situation and to help customers understand and adapt to the changes,” the firm said. “The removal of the de minimis treatment for imports will see more shipments cleared via the informal entry process. We have increased our staffing levels in order to support the additional volume of informal entry clearances we anticipate.”
Informal entry lets people pick up imported goods valued at $2,500 or less at the item’s port of entry once it enters the U.S., according to CBP.
A FedEx spokesperson told Quartz that the company’s priority is “supporting our customers and helping them navigate through the changes going into effect for U.S.-bound shipments.”
UPS did not immediately respond to Quartz’s request for comment.
Other countries and carriers, including the International Post Corporation, Australia Post, and Taiwan’s postal service, among others, are also suspending postal shipments to the U.S.