Trump Suspends Duty-Free Imports for All Countries

On July 30, 2025, President Donald J. Trump signed an executive order that suspends the de minimis exemption for all countries, a move that upends long-standing import rules. Starting August 29, 2025, all shipments, regardless of value, must be formally declared and are subject to duties and taxes.

This policy shift removes the $800 threshold that had allowed duty-free entry for millions of low-value goods imported daily into the U.S.

What Is the De Minimis Exemption?

The de minimis exemption is a provision under Section 321 of the Tariff Act of 1930, which allows low‑value shipments (under $800) to enter the United States without paying duties or taxes. It also simplifies customs procedures for importers and logistics providers.

This policy was designed to reduce administrative burdens and streamline trade, particularly for ​e‑commerce businesses and individuals shipping goods internationally.

Why This Executive Order Now?

According to the official White House fact sheet, the suspension is intended to:

·       Combat the flow of illicit and counterfeit goods, especially fentanyl, entering under the radar of U.S. Customs.

·       Close what the administration calls a “loophole” that disadvantages American manufacturers.

·       Increase customs visibility over all imports.

The administration also cited the rapid growth of low-value, direct-to-consumer e-commerce shipments, particularly from China, as justification.

What Changes for Importers and Consumers?

·       Every shipment will now require formal customs entry, even for goods under $800.

·       Duties and taxes will apply to all imports, regardless of value.

·       A $2.10 per package processing fee will be added to each low-value shipment.

These changes mean higher costs for both consumers and businesses relying on low-cost imports.

Broader Policy Implications

This order is part of a broader trade and tariff strategy under the Trump administration in 2025, including:

·       Doubling Section 232 tariffs on steel to 50%.

·       Expanding tariffs on Chinese electric vehicles and lithium-ion batteries.

·       Imposing a 10% reciprocal tariff on certain derivative goods.

Trade experts note that the removal of de minimis could significantly impact e-commerce platforms, international supply chains, and small sellers who rely on fast, low-cost shipping.

Focus on high-volume categories

Some sectors are expected to face the greatest disruption:

Product Category	Countries of Origin	Why They Matter
Electronics (small items)	China, Hong Kong	Historically imported in massive quantities via e‑commerce platforms like Temu and Shein
Fast fashion (textiles)	China, Southeast Asia	Low-cost apparel shipped directly under threshold
Consumer goods and gifts	China, Hong Kong, others	Broad category, as common cross-border parcel imports

• Country-specific tariff impacts

Products from countries previously subject to high tariffs (e.g. China at ~30–145 %) face added rates now applied below the $800 threshold. Some countries get reciprocal tariffs ranging from 20–50 % depending on trade relationship (China: ~34 %, EU: ~20 %, Brazil: up to 50 %).

What Should Businesses Do?

Inland Star recommends:

·       Reviewing your customs compliance processes.

·       Communicating changes to customers.

·       Considering alternative fulfillment or nearshoring strategies.

For expert guidance navigating these changes, contact us today, let us help you with your next import strategy, compliance review, or supply chain adjustment.