(NewsNation) — Millions of packages entering the United States daily are now subject to tariffs after the Trump administration ended the long-standing “de minimis” exemption.
The rule, which ended at midnight Friday, previously allowed goods valued under $800 to enter the U.S. duty-free.
As a result, postal services in about 30 countries have suspended shipments to the U.S., though letters and documents are not affected. Online retailers have warned sellers and customers to prepare for higher costs and potential shipping disruptions.
Critics have argued the move will drive up prices for consumers, though others have said ending the exemption closes loopholes that harm American businesses and allow unsafe goods to enter the country.
Impact of ‘de minimis’ ending
Trump signed an executive order in July suspending the tariff loophole for all countries.
The Consumer Federation of America told NewsNation the exemption originally covered items such as souvenirs purchased by people traveling, but it has shifted over the years. According to Customs and Border Protection, more than 1 billion packages entered the U.S. last year without being taxed.
In 2023, just 8% of de minimis packages coming into the country 2023 were by post, according to the Consumer Federation of America.
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CBP said some have used the system to ship counterfeit products and drugs.
“Bad actors are exploiting this explosion in volume to traffic counterfeits, dangerous narcotics, and other illicit goods, including precursor chemicals and materials such as pill presses and die molds used to manufacture fentanyl and other synthetic drugs that are killing Americans,” the agency said on its website.
Courtney Griffin, director of consumer product safety at the Consumer Federation of America, said the policy shift could cause “some chaos” in the short term.
“It’s supposed to streamline the customs process, but the reality is, the de minimis exemption has allowed a lot of low-value products to get in that are either unsafe or non-compliant,” she said.
While the exception expired early Friday morning for goods from most countries, it expired in May for those from China.
What is the ‘de minimis’ exemption?
The de minimis exemption was established in 1938 under Section 321 of the Tariff Act of 1930 and allows low-value packages to enter the country duty-free.
The rule has been amended several times over the years, and in 2016, the exemption was raised to include products valued at or under $800.
In 2024, more than 92% of all cargo entering the U.S., including 1.3 billion packages worth more than $64 billion, arrived through the de minimis exemption, according to the CBP.
NewsNation’s Zach Kaplan contributed to this report.
