De Minimis Reform in the U.S. (2025): What It Means for Shoppers and Sellers

In May 2025, the U.S. government enacted major reforms to its de minimis import rules, directly impacting how consumers and businesses receive low-cost goods from China and Hong Kong. If you shop on platforms like Temu, Shein, or AliExpress, these changes affect the price you pay and how your items arrive.

Here’s what you need to know about the new regulations — especially if you're buying or selling low-value products.

What Was the De Minimis Rule?

The de minimis rule, under Section 321 of the Tariff Act, previously allowed goods valued at $800 or less to enter the U.S. duty-free and tax-free, as long as they were imported by a single person on a single day.

This loophole enabled fast fashion and discount e-commerce giants — especially from China — to flood the U.S. market with low-cost items shipped directly to consumers without any customs fees or regulatory burdens.

What Changed in 2025?

1. De Minimis Eliminated for China and Hong Kong

As of May 2, 2025, the $800 exemption no longer applies to goods originating from China or Hong Kong, regardless of their value. All shipments from these regions now face customs scrutiny and fees.

2. Flat Fees for Postal Shipments

For shipments arriving via postal services (e.g., China Post → USPS), the U.S. introduced a flat customs fee:

• May 2–31, 2025: $100 per item

• June 1, 2025, onward: $200 per item

This fee is applied per item and regardless of value. Even a $2 keychain will face the same flat duty as a $500 product if it arrives via a postal route.

3. Tariffs for Commercial Carrier Shipments

If the item is shipped via FedEx, UPS, DHL, or another commercial courier:

• A 30% ad valorem tariff is applied (i.e., 30% of the item’s declared value)

• However, if the 30% tariff amount is lower than the $200 flat fee, the flat fee of $200 applies instead

• This ensures very low-cost goods can’t bypass duties by being shipped through alternative carriers

What Happens When the Item Is Low in Value?

This is where the new rules have the most striking effect — especially for buyers used to ultra-cheap imports.

Let’s break it down:

As shown above, the flat postal fees completely eliminate the cost advantage of low-value items from China. Even if an item is priced at $1, the buyer will still face $200 in duties if it's shipped through the postal service starting June 2025.

Why the U.S. Made This Move

The U.S. Trade Representative and Customs and Border Protection (CBP) cited several reasons for the crackdown:

• Curbing counterfeit goods and opioid trafficking

• Protecting American manufacturers and retailers from unfair competition

• Closing a massive tax and duty loophole that allowed major platforms to bypass customs fees

It’s a move aimed at balancing global trade — but one that dramatically reshapes the online shopping landscape.

Impact on Chinese E-Commerce Giants

Retailers like Temu and Shein have relied heavily on the de minimis loophole to deliver millions of low-cost items to U.S. shoppers each month. In response to the new policy, many of these platforms are:

• Shifting inventory to U.S.-based warehouses to avoid direct import duties

• Exploring third-party logistics (3PL) partners and domestic fulfillment centers

• Reevaluating or discontinuing extremely low-margin SKUs that no longer make financial sense

Prices may rise, selection may shrink, and shipping speeds may change as companies retool their operations.

What This Means for U.S. Consumers

• Expect higher prices on small goods from China — particularly if shipped via post

• Slower delivery times as inventory is routed through the U.S. or third countries

• Fewer ultra-low-cost options as duties wipe out profit margins

Shoppers may need to pay closer attention to where an item is shipped from, and what shipping method is used, to avoid unexpectedly high customs charges.

What’s Next?

While the new flat fees currently apply only to China and Hong Kong, they could expand to cover other regions in the future — particularly where de minimis exploitation is prevalent. There are also calls to lower the $800 threshold for allcountries, or to tighten enforcement for large-volume importers.

Platforms like Amazon, Walmart, and Etsy may benefit from the shift, while dropshippers and global sellers will need to rethink how they handle low-value cross-border sales.

Key Takeaways

• The U.S. ended the $800 de minimis exemption for China and Hong Kong in May 2025

• Postal shipments now face a flat fee of $100–$200 per item, regardless of price

• Commercial shipments (FedEx, UPS, DHL) are subject to a 30% tariff or $200 flat fee, whichever is higher

• Low-value products are no longer profitable or viable via postal imports

• Sellers must adjust sourcing, shipping, and pricing strategies to stay competitive

If you’re an e-commerce seller or regular online shopper, understanding these changes is critical. They don’t just change how goods are priced — they redefine the economics of global trade at the consumer level.