In the coming month, American consumers shopping for pre-owned, vintage, or handcrafted goods on popular platforms like eBay and Etsy are set to encounter significant customs duties on international purchases. This change may potentially impact trade on these peer-to-peer websites.
In a surprise announcement made late Wednesday, U.S. President Donald Trump signed an executive order to eliminate the “de minimis” duty-free treatment for parcels valued below $800 from all countries, effective August 29. This move accelerates a change that was previously scheduled for July 2027.
Currently, packages entering the U.S. from abroad with a value of $800 or less are exempt from import taxes. However, under the new directive, they will now be subject to all applicable duties.
Earlier this year, President Trump specifically targeted packages from China and Hong Kong. The recent tax and spending bill signed by the White House repealed the legal basis for the de minimis exemption globally starting from July 1, 2027, causing disruptions in e-commerce operations for online retailers such as Shein and Temu.
The White House justified the swift suspension of the de minimis exemption as a necessary action to address national emergencies and safeguard American lives and businesses. Goods shipped through the postal system will now face either an ad valorem duty matching the package’s country of origin tariff rate or a specific tariff ranging from $80 to $200 for a six-month period, depending on the originating country’s tariff rate.
The elimination of the de minimis exemption outside of China has raised concerns among U.S. businesses, including Etsy and eBay, as it could limit access to global markets and impact revenue streams. The decision came under pressure from groups citing issues related to fentanyl smuggling and the influx of cheap products duty-free into the U.S., undermining domestic retailers and manufacturers.
Between 2015 and 2024, the annual influx of de minimis shipments into the U.S. surged from 134 million to over 1.36 billion shipments. The volume of air cargo shipments from Asia reported a 10.7% decline following the cancellation of the tax-free exemption for low-value packages from China in early May.
Since May 2, shipments from China and Hong Kong have been taxed at rates initially as high as 145%, later decreasing to as low as 30% after a trade agreement in mid-May between the U.S. and China. Republican U.S. Senator Jim Banks of Indiana commended the Trump administration’s actions, emphasizing the need to address the influx of duty-free imports flooding the American market.
The upcoming changes are expected to have reverberating effects on the e-commerce landscape and international trade dynamics.