U.S. President Donald J. Trump takes action to secure the nation's safety and economic welfare by temporarily suspending duty-free thresholds for international business shipments worldwide.
In a move to combat illegal imports, protect national security, and address trade deficits, President Trump issued an Executive Order on July 30, 2025, suspending the duty-free de minimis treatment for low-value shipments worldwide. The new policy, effective August 29, 2025, will impact millions of small parcels entering the U.S. daily.
The suspension was initially applied to shipments from select countries, such as Mexico, Canada, Hong Kong, and China, due to national emergencies related to illicit drug trafficking and fentanyl. However, the order now applies worldwide to address broader concerns.
The order aims to close the loophole that allowed low-value e-commerce parcels, particularly from China and Hong Kong, to enter the U.S. duty-free. Customs and Border Protection (CBP) claimed that this practice overwhelmed their ability to monitor for smuggling and trade violations.
The suspension of the de minimis exemption marks a significant shift, forcing importers to pay tariffs on virtually all small shipments. This change will affect e-commerce retailers, international logistics providers, and cargo airlines involved in direct-to-consumer overseas shipments.
The de minimis exemption has been abused, with shippers sending illicit fentanyl and other synthetic opioids, precursors, and paraphernalia into the United States in reliance on the lower security measures applied to de minimis shipments. Enforcement data consistently shows that de minimis shipments account for the majority of all cargo enforcement actions, including 98% of narcotics seizures (by number of cases) and 77% of health and safety/prohibited items seizures totaling over 20 million dangerous or illicit items.
The volume of de minimis shipments has skyrocketed this year, with 309 million so far for FY25 (through June 30), compared to 115 million for all of FY24. This surge has resulted in significant lost revenue for the United States. Between 2015 and 2024, the volume of de minimis shipments entering the U.S. increased from 134 million shipments to over 1.36 billion shipments, with an average of CBP processing over 4 million de minimis shipments into the U.S. each day.
In April, President Trump declared a national emergency relating to the conditions underlying the United States' exploding trade deficit and the implications of that deficit for the United States' economy and national security. The President signed into law the One Big Beautiful Bill Act, which permanently repeals the statutory basis for the de minimis exemption worldwide effective July 1, 2027. However, President Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses NOW.
[1] White House Fact Sheet: President Trump's Executive Order on Customs and Border Protection [2] Customs and Border Protection News Release: President Trump Suspends De Minimis Treatment for Low-Value Packages from China and Hong Kong [3] Customs and Border Protection News Release: President Trump Issues Executive Order on Customs and Border Protection [4] Customs and Border Protection News Release: President Trump Declares National Emergency on Southern Border and Signs Proclamation on National Emergency on Southern Border [3] Customs and Border Protection News Release: President Trump Declares National Emergency on Northern Border and Signs Proclamation on National Emergency on Northern Border
- The Executive Order issued by President Trump on July 30, 2025, targets the de minimis exemption to combat not only trade deficits but also the illicit import of substances like fentanyl, which pose a significant threat to national health and safety.
- The new policy, effective August 29, 2025, will not only impact small parcel imports from countries such as Mexico, Canada, Hong Kong, and China but will also extend to all countries, as it aims to address broader concerns related to international crime and justice.
- The suspension of the duty-free de minimis treatment for low-value shipments worldwide will affect various sectors, including e-commerce retailers, international logistics providers, and cargo airlines who are involved in direct-to-consumer overseas shipments, potentially influencing the economy and politics of concerned nations.
- The suspension marks a shift in policy and legislation, as it will force importers to pay tariffs on virtually all small shipments, which may have wider implications for general news, war-and-conflicts, and even political discussions as nations adapt to these changes.
