Source: Supply Chain Dive
Date: 4th July 2025

The U.S. President signs a bill repealing the de minimis exemption, which allows low-cost imports to bypass duties.

A significant change to U.S. import policy is on the horizon, as the U.S. President signed a sweeping bill on July 4th, eliminating the de minimis exemption that has allowed imports under $800 to enter the country without paying duties or taxes. The repeal is set to take effect on July 1, 2027, as part of the “One Big Beautiful Bill Act.” While exemptions will remain for items purchased during travel or as bona fide gifts, the move will significantly affect low-cost imports, especially from countries like China, Mexico, and Canada.

This decision marks a continuation of the U.S. administration’s push to restrict de minimis, a policy that has been under scrutiny due to the influx of contraband and the growing volume of low-cost shipments entering the U.S. The most affected will be e-commerce companies, such as Shein and Temu, that have leveraged the exemption for international shipments directly to U.S. consumers. The change is expected to alter supply chain models, potentially pushing companies to adopt bulk shipping or increase U.S.-based fulfillment operations.

The new bill also introduces civil penalties for those who misuse the de minimis entry, with fines reaching up to $10,000 for repeat offenders. While this will expose a wider range of goods to duties, the policy is designed to ensure greater control over trade and combat illegal imports.