De Minimis Window to Close August 29

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Jul. 30, 2025
By: Austin J. Eighan

Starting August 29, the de minimis duty exemption is scheduled to be removed for importers of low-value goods, regardless of origin. On July 30, President Trump signed an Executive Order (EO) suspending the duty-free administrative exemption for certain low-value (i.e., “de minimis”) imports. The Administration reports that the EO closes the “catastrophic loophole” that foreign shippers use to evade tariffs and import dangerous goods into the country.

The EO targets the de minimis exemption currently available under 19 U.S.C. § 1321(a)(2)(C), which allows eligible merchandise with an aggregate value up to $800 per day per person to enter the U.S. duty- and tax-free. The Administration had previously revoked de minimis eligibility for goods from China and Hong Kong (read more here). However, once the latest EO takes effect, goods from all origins will face the full range of applicable duties.

Importers bringing in goods via international mail will have a transitional option: either pay a flat-rate duty of $80 to $200 per item—depending on the IEEPA tariff level (i.e., the total duty rate for all applicable tariffs under the IEEPA EOs in accordance with the stacking rules) for the country of origin—or opt for an ad valorem rate based on the product’s value. Importers can calculate the flat-rate tariff based on country of origin:

    (i) Countries with an effective IEEPA tariff rate of less than 16 percent – $80 per item;

    (ii) Countries with an effective IEEPA tariff rate between 16 and 25 percent (inclusive) – $160 per item; and

    (iii) Countries with an effective IEEPA rate above 25 percent – $200 per item.

The flat-rate method will expire after six months, at which point all packages must comply with the ad valorem tariff.

De minimis personal exemptions will remain available. American travelers will still be able to bring back up to $200 in personal-use goods duty-free. Individuals will also continue to receive gifts valued at $100 or less without duties.

If your company has any questions regarding the de minimis suspension’s impact or would like to explore how to mitigate increasing duty-spend, please reach out to one of our attorneys at Barnes, Richardson & Colburn.