Beginning Friday, August 29, 2025, shoppers purchasing low-cost items as well as high-end, low-priced products will face import duties, ending a decades-old rule that allowed packages valued at $800 or less to enter the U.S. duty-free. For many consumers, this change functions like a tax increase on imported goods.

The de minimis exemption was established in 1938 to save the government time and money by exempting low-value shipments from duty collection. The threshold gradually increased over the decades—from $1 to $800—to reflect inflation and rising international trade. Its elimination now affects a broad range of products, from everyday items to boutique and luxury goods.

Impact on online shopping

Many popular international e-commerce platforms previously relied on the duty-free exemption to ship low-cost items directly to U.S. consumers. With the rule’s removal, those shipments are now subject to tariffs and additional fees.

Even orders from U.S.-based companies may be affected if the items are manufactured outside the United States. Products genuinely made in the United States or qualifying for trade exemptions remain exempt from the new duties.

Customs duties are expected to range from 10% to 50%, depending on origin and product type. Major carriers, including USPS, UPS, FedEx, and DHL, may also apply flat handling or customs fees of $80–$200 per package for the first six months. Even packages with prepaid duties (DDP) may incur these extra fees, creating the risk of “double charges.”

If a consumer refuses to pay, the package may be returned to the sender or held at customs, which can result in lost purchases or additional fees being incurred.

How consumers can manage costs

1. Consider DDP (Delivered Duty Paid) options: Some retailers now include import duties in the checkout price to avoid unexpected fees at the time of delivery.

2. Check product origin: Items produced entirely in the U.S. or qualifying under trade agreements may be exempt from duties.

3. Consolidate shipments: Reducing the number of separate packages may help minimize multiple fees.

4. Plan for delivery times: Please note that customs processing may temporarily delay shipments.

5. Compare alternatives: Domestic suppliers may offer similar products without additional tariffs.

Tips for shoppers: consider DDP options, verify product origin, consolidate shipments, plan for possible delays, and explore domestic alternatives to reduce costs.

The end of the exemption marks a significant shift in cross-border e-commerce, requiring consumers to carefully review shipping terms and be aware of new charges to avoid unexpected costs.