What the End of the “De Minimis” Exemption Means for Small Businesses

For decades, the United States treated low-value imports as background noise. Packages worth less than $800 passed through customs with no duties, no paperwork, and little friction. This was the “de minimis” exemption. It allowed overseas marketplaces to flourish and gave small businesses a way to source globally without getting tangled in bureaucracy.

As of August 29, 2025, that exemption is gone. A presidential order erased the long-standing threshold, citing concerns about counterfeit goods, forced labor supply chains, and the influx of illicit products like fentanyl. The change is also framed as an attempt to “level the playing field” for U.S. manufacturers who argued they were competing against imports with an unfair advantage.

A rule that once streamlined trade has become a barrier.

Who’s Affected

The immediate impact does not fall on the biggest companies. They already have customs brokers and logistics teams. It lands hardest on the entrepreneurs who built lean businesses around cross-border commerce:

• Etsy shop owners importing beads, textiles, or specialty tools
• Nonprofits ordering branded goods for fundraising campaigns
• Small e-commerce sellers experimenting with platforms like Shein or Temu

For these groups, every shipment now requires a formal customs entry. That means new paperwork, possible brokerage fees, and duties where none existed before. Even if the cost per package is modest, the cumulative effect is significant for businesses running on tight margins.

Why This Moment Matters

Trade policy changes often feel abstract until they touch the delivery truck pulling up to your door. The removal of the exemption has already created turbulence:

• Postal delays. Several international postal services have temporarily suspended shipments to the U.S. while systems catch up.
• A six-month transition period. For some postal shipments, a temporary flat-rate duty system is in place. After that, all shipments will move to the more complex, permanent customs entry process.
• New compliance expectations. Even low-value shipments now require the kind of documentation and oversight once reserved for larger transactions.

This is not a minor adjustment. For many small businesses, it represents a shift from frictionless importing to a system that requires expertise and planning.

Steps to Take

For business owners and nonprofit leaders, the question is not whether the rule has changed, but how to adapt.

1. Audit your suppliers. Identify which imports fall under the new rules and calculate how duties and fees will affect your costs.
2. Recalculate margins. Run new break-even models that account for higher landed costs. Decide whether to absorb the increase or adjust pricing.
3. Consider nearshoring or domestic sourcing. For some products, U.S. suppliers may now be competitive once you factor in customs and delays.
4. Plan for brokerage. Understand that low-value shipments may now require a customs broker. Build that cost into your financial planning.
5. Communicate with customers. Be transparent about potential price increases or slower delivery times. Clear communication builds trust even when conditions change.

The Consumer Connection

While the disruption is most acute for businesses, consumers will feel it too. Prices on popular low-cost imports are expected to rise, and shipping delays are already creating frustration. What was once a seamless global marketplace may feel slower and more expensive for everyday shoppers. For small businesses, that creates a secondary challenge: managing customer expectations in a new environment.

The Importance

The elimination of the de minimis exemption is more than a line in a trade policy manual. It is a reminder of how quickly the ground can shift under small businesses. A rule that once made global sourcing simple now demands paperwork, planning, and patience.

For entrepreneurs, the message is clear: resilience comes from anticipating the details that others overlook. Those who adapt quickly – whether by diversifying suppliers, rethinking margins, or communicating openly with customers – will not only survive the change. They may discover unexpected strength because of it.

Big turns often start with small details.