How the End of the De Minimis Rule for China Impacts U.S. eCommerce Shipping in 2025

Starting May 2, 2025, the U.S. will eliminate the de minimis exemption for goods imported from China and Hong Kong.

This means low value imports—valued under $800—from these regions will no longer qualify for duty-free entry. This change directly affects eCommerce businesses, especially smaller stores and sellers relying on postal shipments or cross-border Section 321 entries.

The shift marks a major step by the Trump administration to close what some have called a "loophole" in the Tariff Act, allegedly used to hide illicit substances, avoid other duties, and flood the market with Chinese goods at ultra-low prices.

What Is the De Minimis Rule and What’s Changing for China?

The de minimis rule—also called the de minimis provision—has allowed imported goods valued under $800 to enter the U.S. without having to pay duties or undergo a formal entry process. It was a big help to businesses who wanted to test products or ship low value packages directly to customers without customs delays.

That changes on May 2, 2025. Under a new executive order signed by President Donald Trump, such shipments from China and Hong Kong lose de minimis eligibility. Now, they must go through customs and border protection (CBP) clearance, using the appropriate entry type and paying all applicable duties.

Why This Change Matters to U.S. eCommerce Store Owners

If you’re a store owner using Shopify, WooCommerce, Etsy, or TikTok Shops and sourcing products from China, here’s what to expect:

• Increased Costs: You’ll likely need to raise prices or eat the extra costs from tariff escalation, especially on postal items containing goods.
• Longer Delivery Times: More shipments now face border protection checks and slower release under informal entry or automated commercial environment processing.
• Lost Advantage: You may lose out on the de minimis benefits that helped small sellers compete.‍
• Complexity: Your shipments might now require an international carrier bond or broker-managed entries.

Key Dates & Timeline: De Minimis Policy Changes (2023–2025)

These actions came after pressure to stop deceptive shipping practices, protect American industries, and better collect tariff revenue from low value imports.

How Will This Affect Your Shipping Costs & Delivery Times?

Here’s what you may notice immediately:

• Duty Payment: Expect to pay a duty rate (flat $100 or 120%) per parcel, even on items that used to be free of countervailing duties (this increases to $200 from June 1).
• Price Hikes: Higher tariff costs may force you to increase retail prices—yes, customers will expect higher prices.
• Slower Shipping: No more fast and easy international postal network delivery. Packages may face delays as CBP determines inspection or clearance.

Practical Guide: How to Adapt Your eCommerce Shipping Strategy in 2025

1. Assess Your Supply Chain

• List every product sourced from China and Hong Kong.
• Check if these qualify for the de minimis exception anymore.

2. Explore Alternative Sourcing Options

• Consider switching to other countries like Vietnam or Mexico.
• These countries still qualify for the de minimis threshold (for now).

3. Adjust Pricing Strategies

• Factor applicable duties into product pricing to avoid surprises.
• Consider flat-rate shipping and adding tax and duty options at checkout to improve customer clarity.

4. Optimize Shipping Methods

• Consolidate your postal shipments via a warehousing and fulfillment partner save on tariff revenue per unit.
• Work with 3PLs or U.S.-based warehouses to bypass international postal slowdowns.

5. Stay Informed

• Watch for further action from the White House and signup to the Easyship newsletter at the bottom of this page—reciprocal tariffs could affect other countries next.

What Shipping Methods Are Still Eligible for De Minimis?

Only low-value sub-$800 shipments from countries other than China and Hong Kong still benefit from the de minimis exception.

For example:

• Vietnam and India: Common alternatives with lower manufacturing costs.
• Mexico: Offers proximity and reciprocal tariff advantages.

What Workarounds Are Sellers Using (And What to Watch Out For)?

Some businesses are trying to keep de minimis benefits by rerouting low value imports through third countries like Canada or Mexico. This is incredibly risky:

• CBP determines the harmonized tariff schedule based on country of origin, not transit location.
• Mislabeling origin violates the tariff act and may trigger penalties or seizure.

Sourcing Alternatives to China: What Are Your Options?

With the end of de minimis China benefits, sourcing shifts are accelerating based on the type of product:

• Vietnam: Electronics, footwear, accessories.
• India: Apparel, textiles, and home decor.
• Mexico: Ideal for low value products with faster U.S. delivery times.

These alternatives still allow for duty exemption on postal items under $800.

How Multi-Carrier Shipping Software Helps You Stay Compliant & Competitive

Tools like Easyship help sellers:

• Automatically calculate applicable duties for imports from China.
• Generate the appropriate entry type under CBP rules (e.g. entry type 86).
• Integrate with over 550 transportation carriers to optimize delivery and cost.
• Manage customs paperwork within the automated commercial environment.

This is especially helpful for sellers managing periodic time frame shipments or high-volume low value packages.

Real Examples: How Brands Like Yours Are Responding

• Shein is shifting fulfillment operations to Brazil and Turkey.
• Temu is rethinking their informal entry model and increasing U.S. warehouse usage.
• Many marketplace sellers are using bonded warehouses to avoid repeated duty payment.
• Many Shopify stores are turning to U.S. based eCommerce fulfillment centers to cut shipping costs

Final Takeaways: What Should eCommerce Sellers Do Now?

• Review Supply Chains: Make sure you’re not caught off guard by the loss of de minimis eligibility.
• Use Smart Shipping Tools: Automate duty payment, compare transportation carriers, and track postal service performance.
• Communicate with Customers: Set clear expectations on delivery timelines and higher prices.
• Stay Legal: Avoid deceptive shipping practices—comply with customs and border protection regulations.

This change is about more than just president Trump’s tariff and trade policy, it’s a clear sign that the de minimis rule is being reevaluated in the age of global trade wars.

Related: Major U.S. Section 321 De Minimis Changes (May 2025)

Ready to simplify and save on shipping?
Easyship is here to help.

Easyship helps eCommerce sellers stay profitable in a changing trade environment. With de minimis changes, customs duties, and new rules for cross-border orders, our free shipping tools and smart dashboard are built to help you ship smarter and sell globally—without the stress.

Our Most Useful Features Right Now:

• Tax & Duties Calculator: Get instant landed cost estimates—including import taxes, VAT, and tariffs—for 200+ countries, based on product type and destination.
• Pre-Paid Tax & Duties: Generate all required paperwork and choose to pre-pay or pass duties and taxes to customers—no surprise fees, no delays.
• Global Fulfillment Network (3PL): Store products closer to your customers with our trusted 3PL partners across North America, Europe, and Asia to reduce shipping time and costs.
• Cross-Border Rate Comparison: Access 550+ couriers worldwide and automatically choose the best option based on speed, cost, and delivery reliability.
• Instant Rates At Checkout: Improve conversions and transparency by displaying real-time shipping costs, including duties and taxes, right at checkout.

Frequently Asked Questions (FAQ)

1. What is the de minimis rule?

It’s a U.S. customs rule that allows low value imports under $800 to enter duty-free without a formal entry.

2. What changed for China and Hong Kong in May 2025?

The U.S. ended the de minimis exemption for imports from China and Hong Kong, meaning all such shipments now require duty payment and customs clearance.

3. Does this affect my eCommerce store if I use Chinese suppliers?

Yes. You’ll likely face higher shipping costs, new customs paperwork, and longer delivery times for postal shipments from those regions.

4. Can I still use de minimis benefits if I ship through another country?

No. CBP determines duties based on country of origin, not shipping route. Workarounds like this can lead to fines or shipment seizures.

5. What’s the best way to manage the new rules?

Use multi-carrier shipping software like Easyship to calculate duties, select the right entry type, and streamline compliance with customs and border protection.

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IMPORTANT: The information provided in this blog is for educational purposes only and does not constitute legal, tax, or financial advice. Laws differ by jurisdiction and change regularly. You should not rely on this content as your sole source of information. If you have specific concerns, please consult a qualified professional.