De Minimis Exemption 2026: Trump's Changes and What Importers Must Do Now

The de minimis exemption — the rule that lets low-value imports enter the US duty-free — has been one of the most-watched regulatory flashpoints of 2025–2026. Under the Trump administration's sweeping trade agenda, the landscape for importers, ecommerce sellers, and customs brokers has changed dramatically. Here's what you need to know.

What Is the De Minimis Exemption?

The de minimis exemption (Section 321 of the Tariff Act of 1930) allows goods valued at $800 or less per day per person to enter the United States without paying import duties or taxes, and without formal customs entry. This threshold was raised from $200 to $800 in 2016 — a move that fueled the explosive growth of cross-border ecommerce.

The rule was designed to reduce the administrative burden on Customs and Border Protection (CBP) for low-value shipments. What it became was the backbone of a global logistics model used heavily by Chinese platforms like Shein and Temu to ship goods directly to US consumers, bypassing the duty structure that domestic manufacturers face.

What Trump's 2025–2026 Executive Orders Changed

The Trump administration moved aggressively to restrict or eliminate the de minimis exemption for goods from specific countries.

Executive Order — February 2025

President Trump signed an executive order in February 2025 eliminating de minimis treatment for goods originating from China and Hong Kong. Effective immediately, all packages from China — regardless of value — became subject to:

• A flat duty rate of 30% of the declared value, or
• A flat fee of $25 per package (rising to $50 per package after June 1, 2025)

This was a historic shift. Overnight, tens of millions of low-value shipments that had entered the US without duties were suddenly subject to tariffs.

The Implementation Chaos

The rollout was not smooth. Within days, CBP reported being overwhelmed by the volume of affected packages — an estimated 4 million de minimis shipments per day were impacted. The administration briefly paused implementation to allow systems to catch up, then reinstated the restrictions.

Tariff Escalation — April 2025

As trade tensions with China escalated through 2025, the effective tariff rate on Chinese imports rose sharply. By April 2025, Chinese goods faced tariffs of up to 145% under combined Section 301 and reciprocal tariff actions — making even "small" packages extremely expensive.

Current Status (April 2026)

As of April 2026, de minimis treatment remains suspended for China and Hong Kong. Legislative efforts in Congress to formally codify de minimis reform — including proposals to lower the threshold to $200 and exclude certain countries entirely — are ongoing, but no final legislation has passed.

For goods from all other countries, the $800 de minimis threshold remains in effect.

Who Is Most Affected?

Ecommerce Sellers and DTC Brands

If your supply chain runs through China and you were shipping directly to US consumers under the de minimis threshold, you've felt this acutely. Margins on sub-$800 orders have been compressed by the new flat fees and tariff exposure.

What to do:

• Model your landed cost with the new fee structure ($25–$50 flat fee plus applicable tariff)
• Consider warehousing inventory in the US (Section 321 from a US warehouse is still valid for non-Chinese goods)
• Explore near-shoring or country-of-origin restructuring

Customs Brokers and Freight Forwarders

The operational impact has been massive. Brokers who built workflows around informal de minimis entries now must process formal entries for millions of additional shipments — each requiring a CBP entry number, HTS classification, and duty payment.

What to do:

• Update intake forms to capture country-of-origin data early
• Implement HTS classification automation
• Review contracts with clients to ensure fee structures account for increased entry volumes

CPAs and Tax Advisors

Your clients are asking: "Why are my brokerage fees suddenly more than the product cost?" The answer is a combination of tariff plus CBP processing fees plus broker fees. This is especially hitting SME importers who relied on de minimis as part of their cost model.

What to do:

• Flag China-origin goods in client import profiles
• Model the 2026 duty exposure and present alternative supply chain scenarios
• Track the legislative calendar — de minimis reform bills in Congress could affect the $800 threshold for all countries

Calculating Your De Minimis Exposure

A quick framework for understanding cost impact:

$50 package from China: Old cost = $0 duty. New cost = $25 flat fee (50% effective rate)

$200 package from China: Old cost = $0 duty. New cost = $60 at 30% (effective rate 30%)

$500 package from China: Old cost = $0 duty. New cost = $150 at 30% (effective rate 30%)

$800 package from Vietnam: Old cost = $0 duty. New cost = $0 (still fully exempt)

For Chinese goods over roughly $83, the 30% ad valorem rate exceeds the $25 flat fee — so most importers are paying percentage-based duties on the full declared value.

Legislative Outlook

Several bills are working through Congress in 2026:

• FIGHTING for American Retail Act — would lower the de minimis threshold to $200 for all countries, not just China
• De Minimis Reciprocity Act — would apply de minimis treatment only to countries that offer equivalent treatment to US exporters
• Section 321 Reform Act — would exclude goods from China, Russia, and other "adversary nations" permanently

None have passed as of April 2026, but political momentum is clearly toward restriction. Importers should model scenarios where the threshold drops to $200 even for non-Chinese goods.

How to Monitor De Minimis Changes Going Forward

The de minimis situation is a perfect example of why real-time regulatory monitoring matters. Between executive orders, implementation pauses, tariff escalations, and legislative proposals, the rules changed multiple times in a single year. Each change had immediate financial consequences for businesses caught off-guard.

Legiseye monitors US trade regulation in real time, automatically parsing and classifying relevant legislative and regulatory updates so your compliance team knows the moment rules change — not weeks later. Our trade intelligence vertical tracks:

• US Customs and Border Protection guidance and rulings
• Executive orders affecting trade and imports
• Congressional bills on tariff and customs reform
• International trade agreements and reciprocal tariff actions

Try Legiseye free →

Key Takeaways

1. De minimis is suspended for China and Hong Kong — the $800 threshold no longer applies; flat fees or 30%+ duties apply instead
2. All other countries still have the $800 threshold — but this could change via legislation
3. Ecommerce sellers, brokers, and CPAs are the hardest hit — model your exposure now
4. Legislative risk is real — watch for bills that could lower the threshold globally to $200
5. Real-time monitoring is essential — the rules changed multiple times in 12 months; manual tracking is not sufficient

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This article reflects the regulatory situation as of April 2026. Trade policy is actively evolving; consult with a licensed customs broker or trade attorney for advice specific to your situation.