The fast-approaching end of the de minimis exemption could pose challenges for e-commerce supply chains’ peak season plans.
The exemption, which allows sub-$800 imports to enter the U.S. duty and tax free, will be eliminated on Aug. 29 to crack down on drug trafficking and importers avoiding tariffs, per a White House fact sheet. De minimis was previously set to end on July 1, 2027 as part of a tax bill signed by President Donald Trump last month.
The exemption has been barred for China-origin imports since May, but many importers planned to keep using the trade tool from other countries for the next few years, LVK Logistics CEO Maggie Barnett said. While de minimis is associated with major direct-to-consumer marketplaces like Shein and Temu, an array of other businesses also utilize the tool for cost-effective parcel shipping across borders.
