Overview

The U.S. government has permanently scrapped the de minimis rule that let shipments under $800 enter the country duty-free. Phased in throughout 2025 and reaching full enforcement on February 15, 2026, the change layers multiple tariff programs on top of one another — pushing combined rates anywhere from 30% to over 70% depending on the product. For Amazon FBA sellers who source from China or other overseas suppliers, the impact on landed costs, margins, and long-term sourcing strategy is significant.

What's Changing

• De minimis threshold gone — The $800 duty-free exemption no longer applies, first removed for China and Hong Kong shipments in August 2025, then extended globally later that month.
• Tariffs now stack — Sellers face overlapping charges: a 10% reciprocal tariff, a 20% fentanyl-related surcharge, the 25% Section 301 tariff, and standard product-specific duty rates.
• Formal customs entry required — Every inbound shipment from affected origins must go through full customs documentation regardless of value, adding paperwork and potential delays.
• Enforcement is active — CBP has already rejected over 100,000 non-compliant shipments, and full penalty enforcement begins February 15, 2026.

How the Rollout Unfolded

The exemption ended for Chinese and Hong Kong goods on August 2, 2025, requiring formal customs entry on all shipments from those origins. Weeks later, on August 29, the rule expanded globally — closing the loophole of routing Chinese-made products through third countries.

A partial reprieve arrived when a U.S.-China trade truce stabilized Section 301 tariffs at 20–30% for most FBA categories and trimmed fentanyl surcharges by ten percentage points. That softened the worst-case scenarios but still leaves sellers facing materially higher import costs than a year ago. After February 15, 2026, non-compliant importers risk shipment holds, rejections, and financial penalties.

Tariff Rates by Product Category

The burden varies widely by what you sell, because base duty rates differ and then stack with Section 301 and other charges.

Textiles and apparel sit at the steep end — 40–54% combined rates. On a $20 product, that means $8 to $11 in duties alone. Private-label clothing sellers and fashion accessory brands face the sharpest margin compression and may find many SKUs unprofitable without repricing.