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Today โ€” 29 August 2025Main stream

De Minimis Exemption ends for packages shipped to the U.S.; here's what it means

29 August 2025 at 09:46

Overnight, it may have just gotten a lot more expensive to shop online, and it's likely going to take even longer to actually get what you ordered. A shipping loophole, known as the "De Minimis Exemption," ended just after midnight.

It was an exemption that allowed packages worth less than $800 to enter the United States duty-free.

This is going to affect millions of international packages, especially on orders from places like Shein, Temu and Amazon.

We talked to several people on Friday morning, and the reaction was split. Some said it would affect them, while others said it wouldn't.

The Trump administration ended the nearly century-old exemption.

This is actually an exemption from tariffs that has existed since the 1930s. So, its been in place for a long time," Michael Greiner, an Oakland University professor, said. "Essentially, what it says is that under a certain value, now its $800 of value, that its not worth the trouble for the Customs and Border Protection authorities to try to assess how much tariff is on a package.

The administration said the change, which took effect overnight, will reduce the amount of drugs and counterfeit goods coming into the U.S.

Literally every single package coming into the United State, no matter how small the value that it represents, is going to have to be checked to determine how much tariff is associated with it. And, as a result of that, its both going to slow down how long it takes for things to ship from pretty much everywhere into the United States," Greiner said.

Additionally, the Trump administration said the move will also help small businesses. According to one estimate, ending the loophole will bring in nearly $10 billion per year.

Critics warn the tariffs could slow spending and cost the average American household an estimated $1,300 annually.

Metro Detroiters reacted to the news overnight, and Plymouth resident Mason Barraco said he does a lot of online shopping.

It would affect me a little bit because, I mean, if youre working only one job making the same amount and trying to buy that one item, and now its up, you cant afford it if you make the same," he said.

Others, like Ashley Parson, said the changes won't impact her much.

I dont really like to shop. But, if I need something, or if I have some extra free time, Ill go. I think its a little bit more sustainable for waste reduction to be able to shop even if it is something like Shein or Amazon to be able to like shop that in a thrift second-hand," she said.

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