Overview

Effective May 2 2025, the United States ended the de minimis exemption for shipments originating in China and Hong Kong. The change means that any import, regardless of value, now incurs duties and must clear formal customs entry. Amazon sellers who previously relied on the $800 duty‑free threshold must adjust sourcing, pricing, and inventory plans to avoid eroding margins.

Key Points

• De minimis exemption removed — All goods from China or Hong Kong now face tariffs, even parcels valued under $800.
• Postal tariff spike — International mail items are charged the higher of a 120 % ad valorem duty or a flat $100 fee per package.
• Entry Type 86 discontinued — Low‑value imports can no longer use the streamlined Entry 86; Entry 11 is now the default for most small shipments.
• Stacked freight tariffs — Standard freight shipments attract a combined rate of roughly 30 % (10 % reciprocal tariff plus 20 % IEEPA fentanyl‑related tariff) through July 11 2025.
• Amazon Haul impact — The ultra‑low‑price storefront that ships directly from China loses its duty‑free advantage, weakening its price competition with platforms such as Temu and Shein.
• Legal uncertainty persists — A federal court has blocked broader reciprocal tariffs, yet collections continue pending appeal, leaving open the possibility of retroactive refunds.

How the New Tariff Rules Work

1. Customs entry requirement — Every shipment from China or Hong Kong must be entered through the formal customs system, even a $50 phone‑case parcel. For example, a seller sending 200 cases of a $12 accessory now files an Entry 11 declaration and pays the applicable duty.
2. Postal fee calculation — The customs authority applies either a 120 % ad valorem charge or a $100 flat fee, whichever is larger. A $600 order of hair‑clips sent via international mail would incur a $720 ad valorem duty, but because $100 is lower, the flat $100 fee is applied, resulting in a total duty of $720 + $100 = $820.
3. Freight tariff stacking — When the same $600 order is shipped by standard freight, the 10 % reciprocal tariff adds $60 and the 20 % IEEPA tariff adds $120, producing a combined $180 duty (30 % of value). Adding the $100 flat postal‑type fee that still applies to freight yields a total of $280, pushing the landed cost to $880 before freight and brokerage fees.