The Trump Administration has announced as of May 2nd 2025, the closure of the de minimis loophole for goods manufactured in China, regardless of where they ship from.
This change will shake up online shopping habits — and disrupt global supply chains that have quietly grown around this $800 duty-free threshold. What is De Minimis? The U.S. de minimis threshold allows low-value imports (under $800) to enter the United States without:
-Customs duties -Formal clearance -Import fees It’s why shoppers can order from Temu, Shein, or AliExpress with no added costs at the door. What’s Changing? Under the new rule, Chinese-origin goods will no longer qualify – even if shipped from Canada, Mexico, or Europe. That means:
-A formal/informal customs declaration will be required -Duties and import fees must be paid Here’s an Example Let’s say you buy three of your favorite, great-fitting t-shirts from ONE BONE, $50 USD each, made in China and shipped from their headquarters in Canada. Today (Under De Minimis):
-No duties -No taxes -No customs clearance Total: $150 Soon (Without De Minimis for China-Made Goods): -Informal Entry Required (Valued less than $2,500) -Duty (78% for cotton knit shirts from China!): $117.00 -MPF (flat fee for informal entries): $2.53 -Broker Fee (Estimated): $35 Total: $304.53 That’s $154.53 – more than 100% in added costs just to get the same t-shirts delivered. What About International Sellers?
This change won’t just impact American shoppers — it hits entire businesses that have grown around duty-free, small-parcel e-commerce: Fulfillment providers in Mexico, Canada, and Europe routing Chinese goods under de minimis Chinese brands operating U.S.-facing storefronts via 3PLs abroad Global drop-shippers and white-labelers relying on a frictionless pipeline These companies now face: -Higher landed costs per order -Slower transit due to customs clearance -Need to engage brokers or restructure supply chains In short, the low-cost, cross-border model that’s fueled platforms like Shein and Temu as well as small businesses around the globe are facing a serious speed bump This policy shift is meant to protect U.S. industry, address trade imbalances, and protect Americans from elicit imports but it will send shockwaves through global e-commerce. Shoppers will pay more and wait longer Sellers will need to retool their fulfillment and compliance workflows Entire logistics models based on de minimis may need to be reinvented If your business or supply chain has been built around duty-free access to the U.S., this is your wake-up call.
