By Jeffrey A. Newman Esq.
On May 2, an executive order issued ending the de minimus tariff exemption for Chinese imports. This Fridat the de minimus exeption will end for all countries importing products tot he U.S. including Canada, Mexico and Europe. The de minimis tariff exemption is a provision allowing low-value imported goods to enter a country without paying import duties, taxes, or formal entry requirements. The term “de minimis” is Latin for “about minimal things,” reflecting the idea that it’s not worth the administrative effort for governments to process and tax very cheap shipments. In the United States, the threshold was raised to $800 per person per day in 2016 but has recently been suspended for commercial shipments effective August 29, 2025, due to concerns about its use to avoid tariffs and smuggle illegal goods.
Some international postal services are suspending shipments to the United States as a result of this change. European and Asian postal services have taken matters into their own hands by announcing plans to halt shipments as early as Monday. Postal service DHL said August 25 will be the last day it accepts shipments to the United States. More than 1.36 billion de minimis shipments entered the country last fiscal year. The end of the $800 de minimis tariff exemption this Friday will likely result in higher consumer prices for all goods imported into the U.S., with significant impacts on e-commerce purchases and a likely increase in tariff evasion schemes and fraud involving transshipment and misreported pricing
Estimates suggest the end of de minimis will increase costs to U.S. consumers by at least $10.9 billion annually, averaging $34 per person or $136 per family—with some analyses putting the impact even higher, up to $13 billion ($41 per person/$163 per family).
Two types of fraud are expected to increase: misrepresenting country of origin, and transshipping goods via third countries to disguise their true origins and avoid tariffs. These tactics surged previously when tariffs were increased, and enforcement agencies are responding by introducing steep new penalties (up to an extra 40% tariff) and creating dedicated offices to investigate tariff evasion. This fraud may affect sectors like textiles, electronics, and steel, with actors shifting shipments and altering documentation to stay ahead of U.S. enforcement.
The major price increases will be in product categories that previously relied most heavily on the de minimis exemption to avoid U.S. duties—especially fast fashion, apparel, footwear, electronics accessories, cosmetics, small home goods, and select pet supplies.
Examples of major Impacted Categories
Clothing and Footwear
- Virtually all clothing and footwear (especially from platforms like Shein and Temu) will see sharp price hikes; these goods face some of the highest base U.S. import tariffs, and nearly 97% of U.S. apparel is imported.
- Accessories (bags, jewelry, hats, scarves) are also heavily affected, with tariffs often representing up to 100% of product cost for low-value items.
Electronics and Accessories
- Phone cases, chargers, basic gadgets, and other low-cost tech accessories from overseas sellers will jump in price; duty costs often now equal or even exceed the product value for items under $15.
- Larger brands with established U.S. presence are less affected, but niche or small-brand tech items are exposed to full tariffs.
Cosmetics and Beauty Products
- Cosmetics, skin care, and personal care items sourced internationally—especially those with slim profit margins or specialty ingredients from Asia or Europe—will show notable price increases.
Home Décor and Household Goods
- Small home goods, kitchenware, basic utensils, and inexpensive gadgets will cost significantly more, as their low margins make tariffs especially impactful.
Pet Supplies
- Internationally sourced toys, treats, and grooming products for pets purchased online are expected to see marked cost increases.
Less Impacted Categories
- Major established brands (Target, Walmart, Costco) typically already price in tariffs and import duties, so less immediate impact will be visible for goods sold through these channels.
- U.S.-made or already high-margin goods will experience less pricing disruption.
Representative Examples
*Estimates for 2025 based on duty and tariff increases after exemption ends.
Jeffrey Newman is a whistleblower lawyer representing whistleblowers in export tariff controls and other types of whistleblower cases. His website is www.JeffNewmanLaw.com .
He can be reached at Jeff@Jeffnewmanlaw.com or at 617.823.3217
