U.S. Ends De Minimis; Postal Operators Suspend Shipments to America

The United States has ended the nearly century-old de minimis exemption that allowed low-value shipments under USD 800 to enter duty-free. In the wake of this decision, postal operators in several countries have announced the suspension of parcel services bound for the U.S., a shift that will reverberate across cross-border e-commerce.

On the eve of the policy's termination, postal authorities or carriers in Australia, India, Japan, South Korea, Taiwan, Thailand, and New Zealand publicly stated they would pause parcel dispatches to the United States.

U.S. e-commerce marketplaces moved quickly to warn customers about potential shipping disruptions. Etsy said it would stop processing orders to the U.S. that rely on certain postal services, while eBay cautioned sellers dependent on international posts that they would need to secure alternative logistics providers to reach American buyers.

Alison Layfield, Vice President of Product Development at California-based logistics company ePost Global, noted that private third-party carriers equipped to collect and remit duties may charge up to four times the cost of standard postal routes.

Businesses are responding in different ways. Some are passing the added duty burden to consumers—Korean beauty retailer Olive Young announced a uniform 15% surcharge on all orders—while others are halting U.S. sales altogether. UK jeweler Shed Maid stated it would close its U.S. channel starting August 29.

U.S. officials counter that the countries suspending service represent only a small fraction of low-value parcel volumes, adding that such decisions ultimately harm their own economies. Peter Navarro, a senior trade and manufacturing adviser in the previous administration, argued that eliminating small-value exemptions would generate billions in revenue, create thousands of jobs, and strengthen domestic industry.

Trade economist Anne O. Krueger wrote in 2024 that large quantities of Chinese imports were being routed through warehouses in northern Mexico and broken down into small consignments valued under USD 800 to leverage the de minimis exemption for entry into the U.S.

China accounts for more than half of all parcels that previously benefited from the de minimis waiver, with over 30% associated with low-price shopping platforms such as Temu and Shein. The policy shift therefore poses significant headwinds for Chinese sellers active in cross-border e-commerce.

The U.S. textile industry has long criticized these low-value shipments, contending that the exemption created a loophole exploited by foreign competitors, undermining domestic employment and facilitating the inflow of hazardous or counterfeit goods. Following the end of the exemption for Chinese goods in May 2025, U.S. site traffic for Temu and Shein declined substantially. Notably, U.S. customs data show no pronounced change in drug seizures at the border since then.

Matthew Hertz, founder of logistics group Third Person.co, warned that the new regime will also affect small U.S. businesses sourcing from abroad. Many of these firms had relied on low-cost transport lanes from Mexico, Portugal, or Turkey; they will now have to rethink their models and make difficult choices about price, speed, and fulfillment.

With the de minimis exemption gone, low-value shipments into the U.S. face higher friction and costs. Marketplaces, brands, and SMBs in cross-border e-commerce will need to reassess routing, carriers, and landed-cost strategy to protect margins and customer experience.

If you're reassessing your U.S. routing or duty strategy, Forest Shipping—an international freight forwarder—can help. From optimized DDP solutions and carrier selection to customs compliance and multimodal options from China to your destination market, our team designs lanes that balance cost, speed, and reliability under the post-de minimis exemption landscape.