Consumers, shippers, and small businesses at home and abroad are scrambling after the U.S. abruptly ended a decades-old exemption that allowed low-cost goods to enter duty-free.
For nearly 100 years, the de minimis rule let merchandise valued at $800 or less bypass import taxes. But as of 12:01 a.m. Friday, the rule expired. Now, shipments face either a 10–50% levy based on the country of origin or a flat $80–$200 charge — a change already rattling global commerce.
President Donald Trump’s July 30 executive order requires transportation carriers to collect duties from merchants before arriving in the U.S. via third-party services preapproved by Customs and Border Protection. As of midday Friday, only a dozen providers were certified. In response, more than two dozen countries — including Japan, Taiwan, and several in Europe — suspended shipments to the U.S., leaving orders stuck in limbo.
Australian fashion brand Sabo is warning customers of 5–10 day shipping delays and price hikes to cover new duties and taxes. Online marketplaces like Shopify and Etsy are rushing to guide sellers, but experts warn that overnight and even five-day shipping will be rare.
The fallout is already hitting. British book and art dealer Paul Robertson said he couldn’t ship a $1,000 poster to an American client. U.S. customers like Minnesota knitter Joan Strickler can’t get wool yarn from the U.K., and Canadian yarn companies are pausing U.S. orders altogether. “I feel like it’s all chaos for no reason,” Strickler said.
The change comes after the U.S. cut off de minimis shipments from China and Hong Kong in May, targeting fast-fashion giants Shein and Temu, who thrived under the exemption. Of the 1.4 billion packages that entered the U.S. last year under the rule, about 75% came from China.
White House trade adviser Peter Navarro argues ending the loophole will generate $10 billion annually in tariff revenue, create jobs, and protect against counterfeit goods and drugs like fentanyl. But experts say American consumers will ultimately foot the bill, with higher prices at checkout.
“I can afford the items but I can’t afford all the duties and fees,” said Kelly Flowers of Georgia, who was charged $46 on an order of enamel pins from Canada.
Smaller businesses are especially vulnerable, often lacking the resources to handle complex customs filings. Many may abandon the U.S. market entirely, reducing consumer choice. Even big brands will feel the squeeze. Tapestry, which owns Coach and Kate Spade, warned investors of “profit headwinds” from the rule change.
“It was the law of the time, and now the law has changed,” Tapestry CFO Scott Roe said.
