The looming termination of the de minimis exemption is set to disrupt e-commerce supply chain operations just as peak season planning intensifies.

The exemption, which permits imports valued under $800 to enter the U.S. without duties or taxes, will be rescinded on Aug. 29. According to a White House fact sheet, the move aims to curb drug trafficking and prevent importers from evading tariffs. Previously, de minimis was scheduled to end on July 1, 2027, under a tax bill signed by President Donald Trump last month.

Although the exemption has been prohibited for China-origin imports since May, many importers had intended to continue leveraging the trade tool for shipments from other countries over the coming years, according to Maggie Barnett, CEO of LVK Logistics. While de minimis is often linked to major direct-to-consumer platforms such as Shein and Temu, numerous other businesses also rely on it for cost-effective cross-border parcel shipping.

"They're scrambling right now because they just thought [the elimination] wouldn't happen so fast," Barnett said.

The accelerated timeline for eliminating the trade tool complicates efforts by direct-to-consumer importers to fully adjust operations before the Q4 holiday shopping season. Nevertheless, experts note that shippers dependent on de minimis have viable options to mitigate the impact of its expiration, both in the immediate term and over the long run.

Pricing and shipping hurdles ahead

Without de minimis, low-cost imports will incur all applicable duties — including tariffs imposed by President Donald Trump's administration — adding costs that were previously avoidable.

Trump's executive order eliminating the trade tool includes an exception for one cost-effective import channel: the international postal network. Postal packages, however, will not escape entirely. They will be subject to either a duty equivalent to International Emergency Economic Powers Act tariffs or a fee ranging from $80 to $200, depending on the IEEPA rate.

The fee-based option will be available for only six months, and experts describe the charge as a significant burden for importers. In U.S. Customs and Border Protection's 2023 fiscal year, the average value of a de minimis shipment was approximately $54.

Passing tariff costs to consumers has been a strategy considered by many retailers this year. However, online shoppers accustomed to low prices may turn to alternatives such as brick-and-mortar stores when confronted with added fees, said Nick Baker, co-lead of Kroll's trade and customs practice.

"When customers start seeing a tariff cost or a tariff charge in their cart, that's a lot of times going to kill that deal," Baker said.

De minimis' end will hike import costs for US-destined items
Item Origin country 2024 price 2025 price*
Woman’s Cotton Cozy Slipper China $30 $45.37
Nutritional supplement Canada $37 $60.17
Stainless Steel Water Bottle U.K. $15 $21.81
Japanese Chef’s Knife Japan $240 $298.49

Source: FlavorCloud

*2025 price includes general duties, tariffs and fees that will apply to sub-$800 goods once the de minimis exemption is eliminated Aug. 29. The exemption is already barred for China-origin imports.

Beyond pricing pressures, shipping delays could emerge as Customs and Border Protection processes a surge of formerly de minimis shipments through more rigorous entry procedures, said Anthony Pizza, VP of marketing at freight forwarder Accelerated Global Solutions. Smaller shippers, in particular, may struggle to comply with formal entry requirements, which demand detailed commercial invoices, a customs bond, and additional documentation.

“The major retailers and all of our clients will be ready for peak,” Pizza said, but he cautioned that “headaches and hiccups” will arise for businesses that are unprepared.

Bulk shipping means bigger inventory bets

To gauge the tariff impact on de minimis shipments, shippers should identify which of their SKUs currently rely on the exemption and run cost simulations that incorporate applicable tariffs and fees, according to Stord. The fulfillment provider advises businesses to also model the cost of importing large volumes in a single shipment—rather than individual parcels sent directly to consumers—to determine the most cost-effective fulfillment strategy.

Bulk imports to domestic warehouses are likely to prove more efficient than individual shipments for many e-commerce brands, experts say. Such a shift could boost containerized imports while curbing air cargo activity.

"Now you need a wholesale strategy where you're bringing in these goods and holding it in [the] U.S.," said Rathna Sharad, CEO and founder of FlavorCloud, a cross-border shipping platform.

Bulk importing, however, introduces new inventory planning considerations for brands that previously centered on de minimis. They must ensure that goods brought in larger quantities have sufficient market appeal to sell quickly and avoid warehouse congestion. Companies may use sales promotions to incentivize consumers to purchase goods already stocked in the U.S., Baker noted.

Some importers with inventory held in cross-border warehouses in Canada and Mexico are reducing the frequency of their U.S.-bound shipments, according to Barnett of LVK Logistics. This approach allows them to consolidate larger numbers of orders into a single customs crossing, thereby lowering customs clearance costs. The tradeoff is potentially slower fulfillment speeds for consumers, prompting many shippers to consider U.S.-based fulfillment options once the peak season rush subsides, she said.

"Everyone is just doing this to get through peak season, get through the end of the year while they start to figure out their new business model," Barnett said. "And that usually will entail a U.S. 3PL because again, they're going to have to pay the tariffs at some point."