US to Impose Duties on All Low-Cost Shipments Under Trump Order
Udumbara
The United States is ending its de minimis exemption globally, extending a recent policy that previously targeted low-value imports from China and Hong Kong.
President Donald Trump on July 30 signed an executive order suspending the duty-free treatment of low-value commercial shipments from all countries into the United States. The order effectively ends the global application of the longstanding de minimis trade exemption.
The order expands on a policy enacted in May, closing the exemption on imports from China and Hong Kong. According to the order, beginning on Aug. 29, all goods imported into the United States valued at $800 or less will be subject to applicable tariffs and customs duties, regardless of their origin.
According to Customs and Border Protection figures, more than 1.3 billion de minimis shipments, more than 4 million parcels each day, entered the country in 2024.
“The volume of de minimis shipments, even from countries that historically have not been the primary source of de minimis abuse, has skyrocketed this year, with 309 million so ... through June 30, compared to 115 million for all of FY24,” the White House statement reads.
Under the new policy, packages arriving through international courier services will be treated the same as larger shipments and will no longer qualify for automatic duty-free entry. For shipments sent through the international postal network, duties will be calculated either as a percentage of value based on country-specific tariff rates or through a fixed-fee model ranging from $80 to $200 per item, depending on origin.
That specific-duty option will only be available for six months, after which all low-value packages must be assessed using the percentage-based approach.
In its statement, the White House said the Trump administration is acting under emergency powers authorized by the International Emergency Economic Powers Act. Specifically, it cites national security threats related to illegal drugs, trade imbalances, and the economic impact on domestic industries. Thus far in 2025, the president has declared national emergencies tied to both the fentanyl crisis and the trade deficit.
However, the order does not affect travelers’ personal exemptions or duty-free gift allowances. Individuals returning to the United States from an overseas trip may still bring back up to $200 in goods without paying a duty. Gifts received by mail valued at $100 or less will remain exempt under existing law.
The de minimis provision—formalized under Section 321 of the Tariff Act of 1930—was originally designed to ease administrative burdens on low-value imports. Congress raised the threshold to $800 from $200 in 2016, a change that coincided with the rise of direct-to-consumer international e-commerce.
Conversely, critics have complained that the policy change could lead to delays, increased consumer costs, and a heavy burden on American customs authorities.
The White House said in its statement that the policy aligns with the recently passed One Big Beautiful Bill Act, which includes a statutory repeal of the de minimis exemption effective in 2027. The July 30 executive order accelerates that timeline amid the Trump administration’s broad mission to reshape the global trade order.
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