Overview

The United States has ended the de minimis exemption that let parcels valued under $800 enter duty‑free. The change, phased in from February to April 2025, removes the price advantage that ultra‑low‑cost sites such as Shein, Temu and Amazon Haul previously enjoyed. Sellers who store inventory in U.S. fulfillment centers, especially Amazon FBA operators, now face a more even competitive landscape.

Key Points

• De minimis threshold removed — The $800 duty‑free limit was stripped for China and Hong Kong shipments in February 2025 and extended to all origins by April 2025.
• New duty rates of 30‑54% — Packages under $800 from China are now taxed at 30 % to 54 % of the declared value, with postal surcharges also climbing.
• 1.36 billion shipments affected — In 2024, roughly 1.36 billion parcels entered the U.S. under the exemption; more than 30 % of Shein and Temu orders fell into that category.
• Consumer cost surge of $10.9 billion — Analysts project the policy will add about $10.9 billion to U.S. consumer spending each year, hitting price‑sensitive shoppers hardest.
• Platform pivots underway — Shein halted all direct overseas shipments, Temu is mixing domestic warehousing with limited China‑to‑U.S. routes, and Amazon Haul is scaling back promotions while reassessing its model.

What's Changing

1. Elimination of the $800 exemption — Starting February 2025, shipments from China and Hong Kong no longer qualify for duty‑free entry; by April the rule applies to every country. For example, a $25 phone case shipped from Shenzhen now incurs a $7‑$13 duty, whereas it previously entered free of charge.
2. Higher import duties and postal fees — The new tariff band of 30‑54 % raises the landed cost of low‑value items. A $15 t‑shirt from Guangzhou now faces a $5‑$8 duty plus a higher USPS fee, pushing the final price above $25.
3. Shift from cross‑border to domestic fulfillment — Companies that once relied on direct‑to‑consumer shipping are building U.S. warehouses. Shein, for instance, has opened a fulfillment hub in Texas to stock its best‑selling accessories, eliminating the need for international parcels under $800.