Trump Administration's Recent Changes to the De Minimis Rule
- Freya Jane
- Director of Customer's Success
The de minimis rule, which permits low-value imports (less than $800) to enter the US duty-free, has been the subject of recent big moves by President Donald Trump.
In an effort to stop China, Canada, and Mexico from evading U.S. tariffs through low-value shipments, he signed an executive order on February 1, 2025, rescinding this exemption for imports from these countries.
The goal of these changes is to stop duty-free shipments, particularly from e-commerce platforms like Shein and Temu, which could change the nature of international trade.
Effects on the e-commerce industry
Chinese e-commerce businesses that depended on duty-free, low-value shipments would now have to pay more for customs, which could result in increased costs and longer delivery times.
Small shipments will now require full customs clearance due to the loss of the exemption, lengthening processing times and raising the possibility of delays.
Benefits for US businesses
The demand for locally sourced goods may increase for U.S.-based businesses as a result of higher import prices for foreign vendors.
Need for HS code classification
Since the HS code classification establishes the duty rates for small shipments that were previously subject to the de minimis rule, it becomes even more important. Thus, you need a reliable tool to accurately find the HS code tool for your goods to avoid shipment delays and fines.
With these regulatory changes, businesses must adjust their strategies to mitigate risks and ensure compliance with the latest regulations.
Customs brokers or agents must pay close attention to accurately calculate taxes and duties for low-value shipments to avoid any border constraints. In this context, iCustoms’ Tax and Duty calculator can be a valuable tool to assist you.
See how iCustoms’ HS code finder and duty calculator can help you comply with the recent de minimis regulation!
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