The End of De Minimis Shipments and What It Means

Since 1938, duty-free “de minimis” shipments have been a regular way of importing products directly to consumers.  The process was originally established to make less expensive products more easily accessible to consumers.  Over time, however, this targeted process grew into a giant pathway for shipping products duty-free to the United States.  According to Customs and Border Protection (CBP), approximately four million de minimis shipments arrive in the United States every day.  

A host of issues emerged over the years around this process, not the least of which was the questionable safety of some products being shipped and various ways businesses overseas were cheating the system.  At the same time, the United States increased the de minimis threshold to $800, which was well above the level of most trading partners for the United States. 

The One Big Beautiful Bill (HR 1) included a provision to eliminate all duty-free shipments starting in 2027 (these shipments are already banned for China).  More recently, President Trump eliminated de minimis shipments from all countries, noting that all “shipments, except those sent through the international postal network, shall be subject to all applicable duties, taxes, fees, exactions, and charges.”  

This is a significant win for retailers, who have long called for the end of dry-free shipments as they viewed them as undermining domestic retailers.  Given that both Republicans and Democrats have been pushing to end de minimis shipments, this is a rare opportunity to bring both parties together around a significant trade issue.