De Minimis Is Ending: Here’s What You Need to Know
Originally Published: 31 July 2025
Last Updated: 1 August 2025
There’s never a dull moment in eCommerce, and the last six months have been no exception. The news broke yesterday that the White House is once again set to shake up the playing field for eCommerce brands that ship into the US.
As of August 29, 2025, goods valued at under $800 will no longer be exempt from U.S. import duties. In other words, the De Minimis exemption will be scrapped for all countries.
Previously, this rule allowed international shipments below that $800 threshold to bypass duties, but this will no longer be the case.
There has been considerable back-and-forth from the White House, as well as industry speculation, regarding the removal of the De Minimis exemption. Until now, it wasn’t expected to change until 2027. However, the implementation has seemingly been fast-tracked for now.
If your brand currently ships to US customers from overseas, this change could affect your costs and delivery times and will result in new admin fees, duties and taxes for your customers.
The good news is that localising fulfilment within the US can help you mitigate the impact.
In this article
Who will be affected?
Ultimately, almost every eCommerce brand shipping to the US will feel the effects.
Some specific examples include:
- Brands shipping direct-to-consumer from overseas warehouses or manufacturers.
- Sellers using platforms like Shein, Temu, or similar third-party marketplaces.
- Small businesses that rely on cross-border shipping to reach U.S. customers affordably.
You’re less likely to be affected if you’re already fulfilling orders from within the United States.
How will I be impacted?
With large shake-ups such as this, it’s important to think ahead. If the last six months have taught us anything, it’s that things can change fast. But for now, here’s what you should expect from these changes:
- You’ll face duties on orders that you didn’t have before, which will increase costs and reduce margins.
- There could be delivery delays, particularly in the early weeks, as customs processes adjust.
- There’s a risk of surprise charges at the customer’s door, which is not a great experience for them.
In short, shipping to the US is about to become more expensive and potentially slower.
What you can do
First and foremost, don’t panic. Assuming the rule change goes ahead on August 29th, you still have time to prepare.
If you have a large US customer base and are still shipping from overseas, now is the time to consider localising your fulfilment.
Why localising fulfilment makes sense (especially now)
- You’ll only pay duties once. Shipping hundreds of individual orders directly to customers means you pay duties on every single package, and usually, at a higher rate.
- The duties you pay will be based on the cost price of the goods, rather than the sales price, as is the case when you ship individual orders.
- Shipping in bulk is more cost-effective. Palletised shipping, whether by sea or air, is much cheaper per unit.
- Your customers won’t be hit with surprise fees, as all payments will be made before reaching your customer. You can then work this cost into your retail price.
- Once inventory is stored within the US, delivery to customers becomes local, fast, and duty-free.
Talk to us about localising fulfilment
At J&J, we’re already supporting brands through this transition. We operate two fulfilment centres in the US, located on the East Coast in Columbus, Ohio, and on the West Coast in Las Vegas, Nevada, providing fast, nationwide coverage.
With an extensive network of carrier partners and 1-4 day shipping across the country, we can simultaneously support you through this uncertain time and help you level up your customer experience for the long term.
If you’d like to get stock ready to sell in the US before 29th August, don’t delay. Get in touch today for a no-obligation consultation. We’re here to help.
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