De Minimis is Ending: How Will It Impact Your Ecommerce Business?
The $800 de minimis threshold that enabled direct-shipping from overseas ends on different dates: August 29, 2025 for most countries, November 9, 2025 for China. Here's how this affects different types of ecommerce businesses.
The United States is ending the de minimis exemption globally. Most countries lose the exemption August 29, 2025, while China received a 90-day extension until November 9, 2025. This changes the streamlined customs process that enabled rapid cross-border ecommerce growth over the past decade.
What is de minimis and when does it end?
Under U.S. de minimis trade policy, imported goods valued at $800 or less (per person, per day) have been duty-free since March 2016. The threshold was $200 before that. The exemption let packages under $800 skip tariffs and complex customs paperwork—a policy that enabled massive business model changes.
Current timeline as of August 13, 2025:
Most countries: De minimis ends August 29, 2025
China: De minimis ends November 9, 2025 (90-day extension granted)
Hong Kong: Follows China timeline
The scale: According to White House data on de minimis processing, de minimis shipments increased from 134 million in 2015 to over 1.36 billion in 2024. CBP processes over 4 million de minimis shipments daily. Congressional Research Service analysis estimates that 83% of total U.S. de minimis imports involve e-commerce transactions.
Business types most affected
The impact isn't equal across ecommerce. These five categories face the biggest changes:
1. Direct-from-China dropshippers and small brands Research from Congressional Research Service shows that from FY2018-2021, 67.4% of U.S. de minimis imports were from China and Hong Kong, valued at $228.3 billion. For Shopify merchants using dropshipping apps, this means changing how orders get fulfilled.
2. Fashion and fast-fashion brands The ultra-fast fashion model built around direct shipping faces major changes. Industry reports indicate that apparel brands using near-shoring from Mexico and Canada will be significantly impacted. They'll still exist, but prices will likely increase.
3. Electronics and consumer goods importers CBP guidance from Avalara analysis shows electronics such as computers, semiconductors, and smartphones received temporary tariff exclusions in April 2025, indicating their significant trade volumes. Meanwhile, NPR analysis of Congressional Research Service data shows that platforms like Temu and Shein accounted for about 17% of the U.S. discount market in 2023 for consumer goods, fast fashion, and toys.
4. Small to medium-sized Shopify merchants Brands using Amazon, eBay, or their own Shopify stores for direct-to-consumer shipping from overseas will see operational complexity increase alongside costs. When every order change requires customs re-filing, self-service order management becomes important.
5. Companies using "Tijuana two-step" fulfillment According to customs experts, businesses could work around the new rules by routing through countries that still have de minimis exemptions. "This is what's known as the Tijuana two-step," trade analysts explain. "Send a $1,500 package from China to Mexico, split it into two $750 packages, then ship from Mexico to the US." These workarounds end in August.
Revenue impact: Congressional Research Service data shows China reported $18.4 billion in 2023 de minimis exports to the United States, roughly one-third of the $54.5 billion total U.S. de minimis imports from all sources.
The money impact: new cost structure
Processing costs include multiple fees:
Duties: Based on country of origin and product type (typically 10-25% of product value)
Brokerage fees: $50-150 per shipment according to NCBFAA data
Government processing fees: $31.67 minimum per entry
Postal shipments: Flat fees of $80-200 per item depending on country
For a $200 shipment, new costs could add $75-150 in fees plus applicable duties, increasing total costs by 35-75% depending on origin country and processing method.
What to do about it
This isn't just a shipping problem. It's a business model change.
Check your dependency Calculate what percentage of your revenue relies on sub-$800 shipments from overseas. If you use overseas drop-shipping, assess how this affects your cost per unit. Trade research indicates businesses typically underestimate their de minimis dependency significantly.
Update customer expectations now Additional scrutiny will slow the process of clearing low-value, cross-border packages. Start communicating longer delivery windows and potential cost increases through your Shopify checkout before customers experience them. Enable self-service order modifications to prevent costly post-purchase changes.
For detailed preparation steps including HTS codes, documentation requirements, and carrier-specific changes, see our complete operational guide.
Strategic moves for the next 6 months
Brands that adapt their operations and customer experience most effectively will do better in this transition.
Move inventory to US warehouses Explore bulk shipping and warehousing solutions to maintain cost efficiency. Moving inventory to U.S. warehouses eliminates per-package duties and processing delays. Warehousing in the US or near-shore options like Mexico may offer cost and compliance advantages. For Shopify merchants, this means reassessing inventory management apps and fulfillment integrations.
Restructure supply chains With all countries losing de minimis treatment, the advantage shifts toward domestic or near-shore fulfillment rather than changing countries of origin. Trade analysis indicates businesses are evaluating bulk importing to U.S. warehouses and Mexico/Canada fulfillment centers to avoid per-package customs processing.
Invest in compliance Improve tracking and customs documentation to streamline new processes. Partner with experienced customs brokers who can handle the increased complexity. Work with customs brokers and logistics partners to ensure compliance with US import laws.
Consider new opportunities Some see this disruption as a market opportunity for US-based ecommerce companies that have lost market share to China-founded retailers.
Focus on order optimization Higher shipping costs create natural opportunities for larger average order values. Focus on bundling strategies and cart optimization to offset per-shipment cost increases. When customers want to modify orders, turn those interactions into revenue opportunities instead of support burdens.
Timeline and trade policy volatility
Dates keep shifting with extensions and policy changes. What was originally July 2027 became August 2025, China just got extended to November 2025, and more changes could come at any time.
Beyond de minimis, broader trade policies continue evolving. Tariff rates on specific products and countries change frequently, adding layers of complexity to international business planning.
The challenge for businesses: How do you manage operations when both de minimis timelines and broader trade policies keep changing? The solution: Focus on operational improvements that deliver value regardless of shifting deadlines or tariff rates.
Cleverific delivers operational stability amid constant policy changes. Whether your suppliers lose de minimis protection in August, November, or face additional tariff adjustments, preventing costly returns and streamlining order management improves profitability while building resilience for whatever policies emerge.
How Cleverific helps with de minimis changes
When returns cost $150-400 in round-trip customs processing, preventing them becomes essential.
Prevent unnecessary returns by letting customers update orders before fulfillment. When customers need a different size or want to change their shipping address, self-service editing prevents returns that would require expensive double customs processing.
Improve first-attempt delivery success with accurate order fulfillment. Address corrections and delivery preferences updated before shipping reduce failed deliveries that create costly re-shipment scenarios with additional customs processing.
Protect margins by preventing returns, exchanges, and lost packages. Every avoided return saves both the original and return customs processing fees, preserving profit margins when a single return can eliminate entire order profitability.
Maintain efficiency under compliance pressure: With customs processing taking 2-5 business days instead of hours, customer service teams face increased volume from customers checking order status. When customs delays increase customer service volume, self-service order management reduces support tickets by up to 90%, freeing your team to handle compliance and logistics challenges.
Cleverific's self-service order management helps Shopify brands maintain customer satisfaction during extended shipping timelines while preventing the costly returns and modifications that can hurt profit margins in the post-de minimis environment.
FAQ
What is the de minimis threshold amount? The U.S. de minimis threshold was $800 per person per day, allowing packages under this value to enter duty-free. This was raised from $200 in 2016 but is being eliminated for all countries by August 29, 2025.
Which countries are affected by de minimis ending? Initially, China and Hong Kong lost de minimis privileges on May 2, 2025. All remaining countries will lose de minimis treatment on August 29, 2025, including Canada, Mexico, and European Union nations.
How much will packages under $800 cost now? According to analysis of NCBFAA data on postal shipment fees, packages face duties ranging from $80-200 per item for postal shipments, or full tariffs based on country of origin. For example, packages from countries with tariffs above 25% face $200 per item in fees.
What happens to packages under $800 after August 29? All packages under $800 must go through full customs processing, pay applicable duties, and provide complete documentation. The simplified entry process will no longer be available for commercial shipments. Processing times will increase significantly, and you'll need customs brokers for formal entry procedures. Read our complete guide to new customs processing requirements for detailed timelines, documentation checklists, and carrier-specific changes.
Who enforces the new de minimis rules? U.S. Customs and Border Protection (CBP) enforces the new rules. CBP completed 71 audits in March 2025 that identified $310 million in duties and fees owed, showing increased enforcement activity.
Is de minimis ending legal? It's being contested. The President used authority under the International Emergency Economic Powers Act (IEEPA) to declare national emergencies regarding fentanyl/drug trafficking and trade deficits, then suspended de minimis treatment. However, this use of IEEPA for tariffs is unprecedented and faces legal challenges. In Axle of Dearborn, Inc. v. Department of Commerce, auto parts importer Detroit Axle argues that the president lacks authority under IEEPA to unilaterally levy tariffs—an authority reserved for Congress. The Court of International Trade has denied efforts to restore the exemption for now, but the legal challenge continues.
The de minimis exemption ending represents a significant change in cross-border ecommerce operations. Shopify brands that recognize this as a business model change rather than just a shipping cost increase will be better positioned in the post-de minimis economy.
Don't wait until August 29th to start adapting. The businesses that move now will have the infrastructure, partnerships, and customer communication strategies in place to turn this disruption into competitive advantage.
