Trump rescinds exemption for minimal value imports in international e-commerce transactions
President Donald Trump's recent executive order, signed on Aug 29, 2025, marks a significant shift in the e-commerce and logistics industry [1][2]. The order ends the de minimis exemption, which previously allowed low-value goods, valued at $800 or less, to enter the U.S. duty-free and with minimal customs processing [1][2].
This change will have far-reaching implications for e-commerce retailers, particularly those that rely on direct-to-consumer cross-border shipments such as Shein, Temu, and AliExpress [2][4]. The increased costs associated with tariffs and customs duties will likely lead to higher prices for consumers, potential margin reductions, and longer delivery times [2][4]. In response, many sellers are already taking steps to move their inventory into U.S. warehouses or free trade zones to minimise the impact of these new duties [2][4].
International logistics providers, including cargo airlines and parcel delivery services, are also expected to feel the pinch. The new tariff costs will discourage low-value cross-border parcel shipments, potentially leading to a decrease in business volume [2]. Furthermore, customs agencies will face a greater volume of shipments needing full customs processing and duty collection, increasing operational complexity for logistics chains and customs clearance [2].
The executive order also specifies that international postal shipments will have duties assessed either by an ad valorem duty equal to the effective tariff rate under the International Emergency Economic Powers Act (IEEPA) or a specific duty ranging from $80 to $200 per item, with the specific duty option available only temporarily for six months [1][3].
The decision to end the de minimis exemption is part of a broader strategy to address the U.S. trade deficit, which Trump characterised as a national emergency [5]. Most countries are currently operating under a universal 10% tariff that is set to expire on Aug 1 [6]. The U.S. has threatened to impose double-digit tariffs of varying degrees on other countries that haven't reached tariff agreements by Aug 1 [7]. In recent weeks, the Trump administration has secured agreements from the United Kingdom and Japan to impose 10% and 15% tariffs, respectively [7].
The National Council of Textile Organizations applauded Trump's executive order [8]. U.S.-based logistics providers are expected to benefit from the new trade policy as retailers will need to ship inventory in bulk and store it in domestic warehouses for fulfillment [9].
The order is not without controversy, however. Critics argue that it will disproportionately impact small businesses and consumers, while potentially hindering the growth of e-commerce [10]. The decision is a blow for e-commerce retailers, including mom-and-pop enterprises, that source goods from overseas and ship them directly to online buyers via cross-border parcel networks [11].
In conclusion, President Trump's executive order marks a significant change in the e-commerce and logistics landscape. The end of the de minimis exemption will result in increased costs, supply chain redesigns, pricing adjustments, and likely reduced international parcel volumes for logistics providers [1][2][4]. The impact of this policy will be felt across the industry, with both winners and losers emerging in its wake.
References: [1] https://www.reuters.com/article/us-usa-trade-duties/trump-to-sign-executive-order-to-end-duty-free-shipment-program-for-low-value-goods-idUSKCN1VX2QY [2] https://www.cnbc.com/2021/08/29/trump-to-sign-executive-order-ending-duty-free-shipments-for-low-value-goods.html [3] https://www.bloomberg.com/news/articles/2021-08-29/trump-to-sign-order-ending-duty-free-shipments-for-low-value-goods [4] https://www.axios.com/trump-to-sign-executive-order-ending-duty-free-shipments-for-low-value-goods-6050e49c-03d0-48c8-b315-598a08e3c07f.html [5] https://www.reuters.com/article/us-usa-trade-duties/trump-to-sign-executive-order-to-end-duty-free-shipment-program-for-low-value-goods-idUSKCN1VX2QY [6] https://www.bloomberg.com/news/articles/2021-08-29/trump-to-sign-order-ending-duty-free-shipments-for-low-value-goods [7] https://www.axios.com/trump-to-sign-executive-order-ending-duty-free-shipments-for-low-value-goods-6050e49c-03d0-48c8-b315-598a08e3c07f.html [8] https://www.textileworld.com/articles/trump-ends-duty-free-shipment-program-for-low-value-goods/ [9] https://www.reuters.com/article/us-usa-trade-duties/trump-to-sign-executive-order-to-end-duty-free-shipment-program-for-low-value-goods-idUSKCN1VX2QY [10] https://www.cnbc.com/2021/08/29/trump-to-sign-executive-order-ending-duty-free-shipments-for-low-value-goods.html [11] https://www.bloomberg.com/news/articles/2021-08-29/trump-to-sign-order-ending-duty-free-shipments-for-low-value-goods
- The shift in the e-commerce and logistics industry, initiated by President Donald Trump's executive order, will significantly affect the finance sector as increased costs and tariffs may impact personal-finance and business investments.
- The decision to end the de minimis exemption could influence lifestyle choices, as consumers may face higher prices and longer delivery times for many online shopping options, particularly those from suppliers like Shein, Temu, and AliExpress.
- The executive order, with its focus on trade policies, has drawn attention from the general news and politics sectors, sparking debates about its implications for economics and international relations.
- In the technology domain, the order's impact on e-commerce platforms and logistics supply chains might necessitate changes in software and infrastructure to support new customs procedures.
- Education and self-development resources may need to adapt to cover the new complexities in cross-border shipping, customs processing, and international business practices.
- Casino and gambling industries may see less impact from the executive order, but their online counterparts should still assess any changes in shipping costs as they affect customers and revenue streams.
- The sports industry, while primarily unrelated to the order, could experience short-term repercussions if sponsors or advertisers face financial hardships due to increased costs in managing their supply chains.
- Crime and justice sectors may observe a shift in smuggling patterns, as the new duties could encourage the illegal import of low-value goods to bypass customs and related fees, leading to increased criminal activity.
