In a move that’s sending shockwaves across global e-commerce, former President Donald Trump’s revived tariff strategy now targets small parcel imports the kind that fuel low-cost international retail sales.
According to Reuters, the U.S. has ended the de minimis rule that allowed packages valued under $800 to enter tariff-free. Now, every item no matter how small is taxed, and some global retailers are exiting the American market entirely.
Who’s Affected?
- Chinese e-commerce giants like Temu and Shein
- Small sellers using platforms like eBay, Etsy, and Amazon FBA
- Logistics firms managing drop shipping and warehouse fulfillment
- U.S. consumers, especially lower-income buyers who rely on affordable imports
What’s Changing?
|
Old Rule |
New Rule (May 2025) |
|
Parcels < $800 = no duty |
All parcels taxed regardless of value |
|
Fast-track customs entry |
Now slowed by manual processing |
|
Easy returns & refunds |
Increased documentation & delay |
What Is the “De Minimis” Rule?
The de minimis rule exempts low-value imports from tariffs and customs duties. It’s designed to speed up trade and reduce bureaucracy for small shipments.
Revoking it means:
- More paperwork
- Higher compliance costs
- A regulatory wall for cross-border retail
What to Watch
- Will Biden respond or reverse the order if re-elected?
- Will U.S. inflation creep higher as cheap goods vanish?
- Will we see new warehousing hubs pop up in Canada or Mexico to route goods into the U.S.?
Financial Juggernut Take
This isn’t just a tariff it’s a retail reset.
As global sellers flee, expect price hikes, supply disruptions, and new winners in local U.S. manufacturing and fulfilment.
