Trump Ends “De Minimis” Loophole: What It Means for Shoppers

A major change in U.S. trade policy is about to make many everyday purchases more expensive. President Donald Trump’s July executive order ends the “de minimis” tariff exemption, a long-standing rule that allowed Americans to buy imported goods valued up to $800 per day without paying tariffs or administrative fees.

This exemption also meant that millions of small packages entering the country avoided lengthy customs inspections and paperwork. In 2024 alone, more than 1.36 billion packages arrived in the U.S. under this rule.

Beginning August 29, all imports—no matter their value or origin—will face full customs clearance and applicable duties. This marks the expansion of a policy that previously removed the exemption only for goods from China and Hong Kong, but now applies worldwide.

How Tariffs Affect Prices

When de minimis no longer applies, the cost of goods will rise to include both import duties and the added expense of customs processing. For example, if an item from China costs $200 and the tariff rate is 30%, the final price would be $260. Similar tariff rates apply across

a wide range of countries, and every purchase will now reflect those additional costs.

Items Likely to See the Biggest Increases

Some categories are especially vulnerable to the loss of the exemption:

• Clothing and Shoes: With about 97% of apparel sold in America made overseas, and textiles carrying some of the highest tariff rates, shoppers should expect noticeable price increases.

• Travel Accessories: Suitcases, backpacks, handbags, and cosmetic pouches often fall under textile classifications, which face steep duties.

• Home Decorations: High-volume, low-cost items like decorations and gadgets will see price hikes, even if the increase is just a dollar or two, since margins are small.

• Cosmetics and Toiletries: Many beauty products are packaged in imported components, leaving them exposed to additional costs.

• Electronics: Chargers, cables, earbuds, and other tech products, largely made in China or Vietnam, will become more expensive.

• Pet Products: Toys, grooming tools, and supplements commonly imported from China will face higher prices.

• Small Business Goods: Sellers on platforms like Etsy and eBay, who rely on international suppliers and operate on thin margins, will be forced to pass on higher costs to customers.

• Seasonal Items: Fall and winter goods such as Christmas decorations may become more costly once existing U.S. stockpiles run out.

  
  

Longer Delivery Times Ahead

The end of de minimis won’t just mean higher prices. Consumers should also expect slower delivery. Without the exemption, more packages will be subject to customs exams, duty collection, and administrative delays. While large retailers with U.S. distribution centers may cushion the impact, many international sellers will struggle with added time and expense at the border.

A New Normal for Online Shopping

For years, de minimis helped train American consumers to expect fast, low-cost deliveries from global sellers. Its removal resets those expectations. Shoppers will now see higher prices at checkout and potentially longer waits, as every imported parcel becomes subject to full trade rules.