Are your online shopping costs about to skyrocket? What you need to know before the August 29 law hits
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Online shopping can feel like magic—click, pay, and your item arrives in days from halfway around the world.
But that low-cost convenience many Americans have come to rely on may be slipping away.
A decades-old rule that helped keep overseas purchases cheap is officially on the chopping block. And starting this August 29, a sweeping new law could hit millions of wallets hard.
For decades, Americans have enjoyed a little-known perk called the “de minimis exemption.”
This rule, dating back to 1938, allowed packages valued at $800 or less to enter the US without paying import duties or facing much customs scrutiny.
It was originally designed to save the government the hassle and cost of collecting tiny amounts of tax on low-value imports.
Over the years, as online shopping exploded, this exemption became a golden ticket for bargain hunters and global e-commerce giants alike.
Now, new federal regulations titled “Suspending Duty-Free De Minimis Treatment for All Countries” are set to eliminate that exemption completely.
Starting August 29, 2025 at 12:01 am EDT, every single package—no matter how inexpensive or where it's from—will be subject to duties and additional fees.
Here’s where things get real. Once the exemption is gone, every international shipment will be assessed based on the product’s Harmonized Tariff Schedule (HTS) code and its country of origin.
In plain English: the government will look at what you bought and where it came from, then slap on a percentage-based tax (called an “ad valorem duty”) or a flat fee.
If your package comes through the international postal network (think China Post to USPS), a different fee structure applies.
You’ll either pay a new, specific fee or the standard ad valorem duty—whichever is higher.
Before you panic, there are a couple of exceptions. Gifts sent between individuals and personal allowances for travelers are mostly unaffected, so if you’re sending a birthday present to your grandchild in Paris, you’re probably in the clear.
But for the vast majority of online shoppers, the days of duty-free deals are numbered.
Also read: Secondhand fashion may outsmart tariffs—and save your wallet
The move to end the de minimis exemption is part of a broader effort by the Trump administration to crack down on what it sees as loopholes in US trade policy.
The argument? The exemption has allowed foreign companies—especially fast-fashion retailers and drop-shippers—to flood the US market with cheap goods, sometimes made with forced labor or used to smuggle illegal items like fentanyl.
The administration also points to the sheer scale of the problem: in 2016, about 220 million small packages entered the US under the de minimis rule.
By 2023, that number had soared to over a billion. That’s a lot of untaxed merchandise and a lot of lost revenue for Uncle Sam.
Also read: What people are refusing to buy now—and why these once-affordable items are being ditched
This isn’t the first time tariffs have made headlines. In recent years, the US has imposed hefty tariffs on imports from China, Canada, and Mexico, citing everything from unfair trade practices to concerns about drug trafficking and illegal immigration.
These moves have sparked tit-for-tat responses from America’s trading partners, leading to fears of trade wars and higher prices on everything from steel to smartphones.
For example:
Are you a frequent online shopper? Have you ever been hit with a surprise customs bill? Do you think these new rules are fair, or just another way to squeeze more money out of consumers?
But that low-cost convenience many Americans have come to rely on may be slipping away.
A decades-old rule that helped keep overseas purchases cheap is officially on the chopping block. And starting this August 29, a sweeping new law could hit millions of wallets hard.
For decades, Americans have enjoyed a little-known perk called the “de minimis exemption.”
This rule, dating back to 1938, allowed packages valued at $800 or less to enter the US without paying import duties or facing much customs scrutiny.
It was originally designed to save the government the hassle and cost of collecting tiny amounts of tax on low-value imports.
Over the years, as online shopping exploded, this exemption became a golden ticket for bargain hunters and global e-commerce giants alike.
Now, new federal regulations titled “Suspending Duty-Free De Minimis Treatment for All Countries” are set to eliminate that exemption completely.
Starting August 29, 2025 at 12:01 am EDT, every single package—no matter how inexpensive or where it's from—will be subject to duties and additional fees.
Here’s where things get real. Once the exemption is gone, every international shipment will be assessed based on the product’s Harmonized Tariff Schedule (HTS) code and its country of origin.
In plain English: the government will look at what you bought and where it came from, then slap on a percentage-based tax (called an “ad valorem duty”) or a flat fee.
- From Europe? Expect a 15% tax on your item’s declared value.
- From Brazil? That jumps to a whopping 50%.
- Can’t figure out the tariff? Private carriers will charge a flat $80 per package, regardless of what’s inside.
If your package comes through the international postal network (think China Post to USPS), a different fee structure applies.
You’ll either pay a new, specific fee or the standard ad valorem duty—whichever is higher.
Before you panic, there are a couple of exceptions. Gifts sent between individuals and personal allowances for travelers are mostly unaffected, so if you’re sending a birthday present to your grandchild in Paris, you’re probably in the clear.
But for the vast majority of online shoppers, the days of duty-free deals are numbered.
Also read: Secondhand fashion may outsmart tariffs—and save your wallet
The move to end the de minimis exemption is part of a broader effort by the Trump administration to crack down on what it sees as loopholes in US trade policy.
The argument? The exemption has allowed foreign companies—especially fast-fashion retailers and drop-shippers—to flood the US market with cheap goods, sometimes made with forced labor or used to smuggle illegal items like fentanyl.
The administration also points to the sheer scale of the problem: in 2016, about 220 million small packages entered the US under the de minimis rule.
By 2023, that number had soared to over a billion. That’s a lot of untaxed merchandise and a lot of lost revenue for Uncle Sam.
Also read: What people are refusing to buy now—and why these once-affordable items are being ditched
This isn’t the first time tariffs have made headlines. In recent years, the US has imposed hefty tariffs on imports from China, Canada, and Mexico, citing everything from unfair trade practices to concerns about drug trafficking and illegal immigration.
These moves have sparked tit-for-tat responses from America’s trading partners, leading to fears of trade wars and higher prices on everything from steel to smartphones.
For example:
- In 2023, the US imported $427 billion worth of goods from China, including 78% of all smartphones.
- Canada and Mexico have both faced threats of 25% tariffs, with Canada even threatening to cut off electricity exports to US states in retaliation.
