Overview

The U.S. has officially scrapped the de minimis trade exemption for shipments from China, imposing tariffs of 30% to 54% on packages that previously entered the country duty-free when valued under $800. For Amazon sellers who source from Chinese manufacturers — or compete against sellers who ship directly from China — this represents one of the most significant cost structure changes in cross-border e-commerce in years.

What's Changing

• De minimis exemption gone — Individual shipments under $800 from China no longer qualify for duty-free entry or simplified customs processing.
• New tariff rates of 30-54% — Rates vary by product category, with textiles and apparel at the high end (40-54%) and electronics and accessories at 30-35%.
• Every package affected — Unlike the old system where only shipments above $800 faced duties, all packages from China now incur tariffs regardless of declared value.
• Phased enforcement — Full compliance is required by mid-2026, giving sellers a window to adjust operations.

How the Exemption Worked — and Why It Mattered

Under Section 321 of the Tariff Act, individual shipments valued at $800 or less could enter the U.S. without duties, taxes, or formal customs entry. Originally intended to reduce administrative overhead on low-value packages, the provision became a powerful competitive tool for overseas sellers shipping goods directly from Chinese warehouses to American consumers. Millions of small parcels entered the country daily under this rule, completely bypassing the tariff structure that domestic importers and FBA sellers using traditional supply chains had to navigate. The explosive growth in de minimis shipments drew increasing criticism from lawmakers and established sellers who argued it created a fundamentally uneven playing field.

Timeline and Compliance Deadlines

The policy is rolling out in stages. The exemption has officially ended and tariff assessment on previously exempt shipments has begun. The key date sellers need to track is the full compliance deadline around mid-2026, by which point all China shipments must have proper tariff classifications, declared values, and duty payments processed through formal customs entry. Sellers relying on simplified shipping arrangements through Chinese suppliers or fulfillment partners should begin restructuring logistics and cost models well before that deadline.