As part of the package introduced as the “One Big Beautiful Bill Act,” the U.S. will repeal the de minimis exemption allowing imports under $800 to enter the country duty and tax free on July 1, 2027. President Trump already ended the exemption for imports from China and Hong Kong in May, but now the bill extends the policy to all countries.
Moving forward, parcels will be subject to more stringent inspection and different entry processes, with the Trump administration expected to provide details about what to expect at a later time. The bill also establishes a penalty for any person attempting to use de minimis entry in a way that “violates any other provision” of U.S. customs laws in the amount of $5,000 for the first violation and up to $10,000 for subsequent violations.
The de minimis exemption was originally designed as part of the 1930 Tariff Act to reduce paperwork and administrative costs for customs, long before e-commerce and the Internet existed, and not necessarily to fuel global e-commerce and duty-free purchases into the U.S. The $800 de minimis threshold, which was boosted from $200 in 2016, is one of the highest in the world and fueled the rise of platforms like Temu, Shein, and AliExpress.
Ending the exemption nationwide is expected to generate up to $40B in federal revenue over the next decade, though critics warn that enforcement costs may offset much of that benefit. However even if it's a financial washout for the government, ending de minimis will be a boom for domestic manufacturers and retailers.
Plus, with advancements in AI, improved logistics, and greater cooperation with major foreign retailers and marketplaces to collect duties at the point of purchase, ending de minimis lays the groundwork for a modernized import and customs infrastructure that can serve the U.S. for the next several decades.
The EU and the UK have also been taking steps to end or significantly reduce their de minimis exemptions, and the movement is fueling discussions in other countries around the world about how reforming or eliminating their low-value thresholds as well.
As the global tide turns against de minimis, the Big Beautiful Bill marks a pivotal shift in how the U.S. approaches trade, enforcement, and digital commerce, and will ultimately set a precedent for how other countries proceed.
