Newscasts - How the end of de minimis rule will hit US shoppers and businesses

Etsy

29/08/2025 12:04

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_06wbdxqe&referenceId=tag:reuters.com,2025:newsml_RW060229082025RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: The Trump administration on Friday ended U.S. duty-free imports of packages worth less than $800, the so-called "de minimis" exemption that has fueled a surge in shipments from global sellers to U.S. consumers who will now likely face higher prices. Francis Maguire explains what that will mean for shoppers and businesses. 

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Video Transcript:

The US government ended the de minimis exemption on Friday. Packages worth less than $800 can no longer be sent duty-free from outside the country. But will that mean US consumers now face higher prices? The Trump Administration argues de minimis enabled traffickers to send parcels containing fentanyl into the US. Some US retailers and industry groups also opposed the exemption. They felt it gave an unfair advantage to foreign e-commerce firms like SHEIN and Temu, as well as some third-party sellers on Amazon. De minimis enabled a cross-border e-commerce surge where US shoppers snapped up bargains like $12 dresses on Temu. Orders landed on their doorsteps free of duties as long as their packages were valued at less than $800, until May 2, when exemptions for China and Hong Kong ended. In fiscal 2024, 1.36 billion shipments arrived under de minimis with a declared value of $64.6 billion. US government data says about 73% of de minimis packages entering the US originated from China last year. The change has caused turmoil for postal services around the world. Germany's DHL and mail services in Australia, Britain, Japan, and South Korea are among those to pause shipments to the US as they work to adapt. The new tariff regime will also increase paperwork for sellers as US customs requires information on the origin and type of goods in packages. E-commerce giants SHEIN and Temu have had time to adapt to the change since May, though prices on SHEIN have started to increase. It's harder for small businesses to absorb tariffs, and some plan to raise prices to offset the extra costs. Platforms like eBay and Etsy have advised sellers to communicate with customers about tariff-related price hikes.