No More Free Rides

Aug 28

No More Free Rides: What the End of the U.S. De Minimis Exemption Means for Your Overseas Packages

“There's no alert for anyone who gets shipments from overseas...” That line sums up the chaos unfolding worldwide. With no advance warning beyond a month, the U.S. government has axed the “de minimis” tariff exemption—previously allowing imports under $800 to enter duty-free. The result? Mail carriers and postal services from around the globe are hitting pause on shipments to the U.S.

What’s Happening?

On July 30, 2025, President Trump signed an executive order that eliminated the de minimis exemption globally, which had allowed packages valued at $800 or less to enter the U.S. without duties or extensive customs checks.

These new rules officially took effect starting August 29, 2025, at 12:01 a.m. ET.

Why the Big Shake-Up?

The administration justified the move as necessary to curb:

Illicit activities like fentanyl smuggling,
Tariff evasion, and
Unfair competition by ultra-cheap imports.

Policymakers assert it will protect American businesses and generate revenue.

Global Postal Services Hit “Stop”—What’s on Hold?

Many national postal systems—including those in Germany, Belgium, Sweden, Denmark, France, the UK, Spain, Austria, and several Asian countries—have temporarily suspended shipments to the U.S., particularly for goods, due to confusion over duty collection and compliance.

Deutsche Post/DHL Germany, for example, stopped accepting parcels from business customers after August 22, though DHL Express remains operational.DHL Group

What Happens at Customs Now?

Post-August 29, all packages—even those previously exempt under $800—will face duties. International postal shipments must use one of two duty-calculation approaches during a six-month transition period, after which standard ad valorem tariffs apply:

Ad valorem duty based on the country-specific International Economic Emergency Powers Act (IEEPA) tariff rate.
Flat fees, depending on IEEPA rates:
- <16%: US$80
- 16–25%: US$160
- >25%: US$200

What This Means for You

Online orders from abroad (Etsy, eBay, Temu, Shein) could see major delivery delays—or outright cancellations—as mail systems stall.Red Stag Fulfillment+8WIRED+8The Washington Post+8
Consumer costs are likely to rise sharply, potentially by 10–50%, depending on origin country, adding fees or tariffs per shipment.WIRED+1
Small businesses and retail sellers may face squeezed margins or pass costs to customers or halt U.S. shipments altogether.White & Case+15WIRED+15The Washington Post+15
Personal gifts under $100—especially clearly declared as gifts—still remain exempt, although some carriers may still temporarily suspend them pending clarity.Reuters+15WIRED+15DHL Group+15

Bottom Line

If you’re expecting something from abroad—whether it’s a gift, online purchase, or mason jar of amazingly exotic spices—now’s the time to check with the sender: Is it held up? Returned? Now stored in limbo?

We’re in one of those "wait and see" periods, where shipping lines and customs try to get their act together—and that means uncertainty, rising costs, and, quite simply, a major shift in how small shipments make their way into the U.S.

Useful Links for Further Reading:

No More Free Rides