De Minimis No More: What it Means for Importers and Consumers
President Trump’s Executive Order suspending duty-free de minimis treatment of shipments entering the U.S. took effect last week. The de minimis exemption has been used by retailers around the world catering to the American shopper, and the end of the policy is causing a ripple effect around the globe.
What is De Minimis?
De minimis is a Latin term that means “of the smallest things,” “trifling,” “insignificant.” In the U.S., the de minimis rule dates back to the Tariff Act of 1930. Upon passage of the act, individuals and businesses were permitted to import shipments under $200 without paying duties and taxes.
The intent behind the exemption was to allow CBP to focus on higher-risk and higher-revenue imports and to encourage small-scale trade. In 2016, the U.S. raised the de minimis threshold to $800 with the passage of the Trade Facilitation and Trade Enforcement Act.
After the 2016 change, de minimis shipments surged, from 139 million in FY 2015 to 1.36 billion in FY 2024. International retailers took advantage of the new threshold, and many U.S. policymakers began referring to de minimis as a “loophole.”
Citing safety and fairness concerns, there were dozens of unsuccessful efforts in the U.S. Congress to end de minimis. Finally, the Big Beautiful Bill of 2025
