The United States has confirmed it will terminate the De Minimis duty-free exemption for all imported goods, effective August 29, 2025. This means that shipments to the US valued under $800, regardless of their origin, will no longer be exempt from duties and customs processing fees. The policy change for goods manufactured in China was already implemented in April.

This change is expected to have a significant impact on international businesses and e-commerce, as it removes a key cost-saving measure for low-value shipments.

After August 29, packages valued under $800 will incur standard U.S. import duties, plus any additional ‘reciprocal tariff’ based on the country of manufacture. Carriers will also add their own customs clearance charges.

For a period of six months, companies have the option to use a temporary flat per-item tariff for postal shipments. The rate will vary from $80 to $200 depending on where the goods were manufactured.

After the six-month period, all shipments will be required to have a full customs declaration and pay the necessary duties, additional tariffs, and shipping fees.

Companies should be prepared to provide additional paperwork to US Customs and Border Protection to prove the origin of their goods.

These changes will require companies that ship to the US to adjust their pricing strategies and logistics to account for the new costs and compliance requirements.