Retail brands Shein and Temu likely to increase their product prices in the near future
Starting August 29, 2025, the United States will eliminate the de minimis exemption for all countries and all imports valued under $800. This means that low-value shipments that were previously exempt from duties and full customs procedures will now be subject to regular duties, tariffs, and comprehensive customs documentation regardless of value or origin.
Details of the change include:
- All non-postal low-value imports under $800 will require full customs compliance, including Harmonized Tariff Schedule (HTS) codes, origin declarations, and duty payments.
- For international postal shipments, a phased approach applies:
- Phase 1 (Aug 29, 2025–Feb 28, 2026): A flat per-item duty ($80–$200, varying by origin) is applied.
- Phase 2 (starting March 1, 2026): Full ad valorem tariffs based on the product's value and country of origin tariff schedule are imposed.
- Limited exemptions remain for personal items up to $200 and bona fide gifts valued up to $100 carried by travelers returning to the U.S.
This policy change was preceded by an earlier May 2025 U.S. revocation of the de minimis exemption for China and Hong Kong, which led to a significant reduction in low-value parcel volumes.
While these changes are specifically for the U.S., this marks a significant shift in international shipping duties because the U.S. has historically been one of the major countries allowing a relatively high de minimis threshold ($800). The end of this exemption globally, applied by the U.S. to all countries, effectively removes a major duty-free benefit for low-value imports worldwide.
This change will have a significant impact on international shipping and ecommerce, affecting purchases from companies based in China, such as Shein and Temu. The trade war between the U.S. and China led to the elimination of the de minimis exemption for goods coming out of China and Hong Kong, and it is now being extended to international packages, not just those from China and Hong Kong.
The elimination of the de minimis exemption is related to the ongoing trade war between the U.S. and China. While no global enforcement date beyond the U.S. change on August 29, 2025, was identified, it is widely expected to affect global trade practices and may prompt other countries to reconsider their de minimis thresholds due to the disruption in trade and customs clearance processes.
This represents one of the largest recent shifts in international shipping duties policies and will require major adjustments by importers, exporters, and logistics providers worldwide.
The policy change eliminating the de minimis exemption for all imports valued under $800, effective August 29, 2025, will impact businesses across various industries, particularly finance, as it necessitates duty payments for low-value imports. This adjustment, also affecting ecommerce, may encourage other countries to reconsider their de minimis thresholds, potentially leading to a broader impact on international business and finance practices.
