End of De Minimis from China

As part of its broader trade reviews, the Trump administration has moved to end De Minimis duty-free privileges that have long supported the flow of small parcels into the U.S. from major eCommerce exporters.

Effective 2 May 2025 at 00:01 ET, the de minimis threshold of $800 will no longer apply to goods originating from China or Hong Kong. Instead, these items will be subject to a 120% duty and a postal processing fee of $100 per parcel, which will increase to $200 on 1 June 2025. The new charges apply across all channels, including postal services, courier shipments, and commercial freight.

What Is De Minimis—and Why Is It Changing?
Under the U.S. De Minimis regime, shipments valued under $800 USD have historically entered the country free of duties and taxes, with simplified customs procedures. This policy expanded significantly in 2016, enabling a huge surge in direct-to-consumer eCommerce from overseas platforms, particularly from China.

But critics have long argued that the system created an uneven playing field, allowing overseas sellers to bypass import taxes that domestic retailers must charge. With U.S. airports receiving millions of small parcels daily, enforcement challenges also mounted, fuelling concerns about compliance, product safety, and lost revenues.

The Trump administration’s decision to target Chinese and Hong Kong-origin shipments reflects a wider strategy to address perceived trade imbalances and enforce reciprocity.

Timeline of Key Developments

• 1 February 2025: President Trump announces the planned end of De Minimis for China.
• 4 February: Policy takes effect. U.S. Customs and USPS experience widespread disruptions; USPS temporarily halts acceptance of many international parcels.
• 5 February: Policy reversed to allow time for system and staffing adjustments.
• 8 April: New executive order confirms that de minimis will end on 2 May. A 90% duty is initially set for low-value parcels, along with a $100 postal fee.
• 9 April: Duty rate raised to 120%. Postal fee policy reaffirmed, with an increase to $200 per parcel on 1 June.
• 2 May: Full implementation begins. Goods under $800 from China and Hong Kong are now fully dutiable.
• 1 June: Postal handling fee increases to $200 per parcel.

Importantly, the new duties and fees are not limited to postal shipments—they apply equally to couriers, as well as commercial freight forwarders, ensuring the rule cannot be circumvented through alternate transport modes.

Who Is Affected?

• U.S. eCommerce retailers and marketplaces importing low-cost goods from China for resale or fulfilment.
• Direct-to-consumer brands relying on factory-direct shipments from Chinese suppliers.
• Consumers purchasing from platforms that ship internationally (e.g., Temu, AliExpress, Shein).
• Third-party logistics providers and freight forwarders managing small-parcel or consolidated shipments.

The shift also adds new complexity to customs brokerage, as many low-value shipments that previously cleared without paperwork will now require full declarations and payment processing.

Looking Ahead: Could De Minimis Reforms Go Global?
While these changes are currently limited to China and Hong Kong, the administration has indicated that broader reforms are under consideration. Lawmakers and trade officials are reviewing whether to tighten or eliminate the de minimis threshold for all countries, especially those with high volumes of low-value shipments into the U.S.

Macau is already under review, and other exporters—particularly Mexico, Vietnam, and India—may soon face scrutiny depending on how trade patterns shift.

What Should Importers Do Now?

• Review your supply chain data to identify affected shipments and suppliers.
• Assess your landed cost models for goods under $800, particularly in apparel, electronics, and beauty.
• Explore origin alternatives where possible, especially for fast-moving, low-margin SKUs.
• Ensure compliance documentation and declarations must be fully compliant from 2 May onward.
• Plan for increased postal and courier costs, particularly if you ship high volumes of individual packages.

Whether you’re shipping direct-to-consumer, importing wholesale, or managing fulfilment operations, it’s essential to prepare for the end of De Minimis for China.

We can evaluate your risk and explain alternative strategies. If you need support, our team can help you interpret the rules, update your compliance processes, and make informed supply chain decisions in a fast-moving trade environment.