Online shopping from overseas is about to get a lot more complicated—and, for many, more expensive. Starting Friday, August 29, 2025, the United States will officially end a longstanding exemption that has allowed Americans to receive low-cost imports valued at $800 or less without paying any customs duties. This so-called 'de minimis' exemption, which has been in place for over nine decades, is being erased under an executive order signed by President Donald Trump on July 30, 2025, according to multiple sources including the Associated Press and statements from the Universal Postal Union (UPU).
For decades, the exemption meant that a wide array of goods—everything from electronics to fashion accessories—could be shipped from abroad directly to American doorsteps without any additional costs or bureaucratic hurdles. But as of Friday, that era ends. Now, any merchandise entering the U.S. with a declared value of $800 or less will be subject to additional levies, ranging from 10% to 50% depending on the tariff rate of the country of origin. Alternatively, for the next six months, carriers and shippers will have the option to pay a flat rate, which can range from $80 to $200 per package. The exact rate depends on the specifics of the shipment and its origin, as outlined in President Trump’s executive order.
The move marks a dramatic shift in how cross-border e-commerce operates for American consumers. According to the Associated Press, the Trump administration argues that the exemption has become a loophole exploited by foreign businesses to evade tariffs and, in some cases, by criminals seeking to smuggle drugs into the country. The administration’s new policy aims to close these gaps and ensure that imports are more tightly regulated and taxed, bringing the U.S. in line with the tougher customs regimes found in many other countries.
But the policy change has not gone unnoticed—or unchallenged—on the international stage. The Universal Postal Union, the United Nations agency responsible for coordinating international mail deliveries, has voiced significant concerns. On Tuesday, August 26, 2025, the UPU sent a formal letter to U.S. Secretary of State Marco Rubio, highlighting the confusion and logistical headaches the sudden change has caused for its 192 member countries. The agency noted that more than 30 countries, including almost all in Europe, have already limited or outright stopped shipping U.S.-bound parcels valued at $800 or less due to the uncertainty around the new requirements.
In a statement, the UPU said, “Recognizing that the short implementation timeline poses a significant challenge for the international postal network, particularly for the delivery of e-commerce items, the UPU is working with the relevant U.S. authorities to ensure that information on the operational requirements of the measures is communicated effectively.” The agency also revealed it is working to accelerate the development of a system that would make it easier for post offices to charge and collect the applicable duties, especially in cases where the sender is responsible for payment.
The ripple effects have been felt by businesses and consumers alike. For online retailers based overseas, the new rules mean additional paperwork, higher costs, and a potential slowdown in shipments to one of the world’s largest consumer markets. Many have scrambled to update their shipping policies, warn customers about possible delays, and adjust pricing to account for the new tariffs. Some have even suspended U.S. sales of low-value goods altogether, at least until the dust settles and the new processes are fully understood.
For American shoppers, the change could be jarring. Many have grown accustomed to the ease and affordability of ordering directly from international merchants, particularly those based in Asia and Europe. Now, they face the prospect of surprise fees at the border—sometimes as high as 50% of the item’s value, or a flat surcharge that could dwarf the cost of the product itself. The days of snagging a bargain from overseas and having it delivered hassle-free are, at least for now, on hold.
There are, however, a few carve-outs in the new policy. According to the White House, U.S. residents will not have to pay duties on gifts sent from outside the country valued at up to $100. Similarly, personal souvenirs brought back from trips abroad worth up to $200 will remain duty-free. These exemptions are intended to soften the blow for travelers and those receiving small personal gifts, though they do little to alleviate the broader impact on e-commerce.
The UPU’s chief concern is the lack of time and guidance given to postal operators worldwide. The agency’s 192 members, spanning nearly every corner of the globe, were not given sufficient notice or detailed instructions on how to comply with the new procedures. This has led to widespread confusion, with some postal services halting shipments to the U.S. altogether rather than risk non-compliance or face costly penalties. The UPU is now working urgently with U.S. authorities to clarify operational requirements and develop streamlined systems for duty collection and reporting.
For the next six months, carriers handling orders sent through the global mail network have the option to choose between the value-based tariff rate and a flat duty of $80 to $200 per package. The hope is that this transitional period will give both shippers and postal operators time to adapt to the new reality. Still, with the holiday shopping season fast approaching, retailers and consumers alike are bracing for delays, higher costs, and plenty of frustration.
It’s not just businesses and shoppers who are feeling the pinch. The policy shift has also created headaches for customs officials, who must now vet a much larger volume of packages for compliance with the new rules. Increased scrutiny at the border could mean longer wait times for all incoming parcels, not just those subject to the new tariffs.
While some industry groups have applauded the move as a necessary step to level the playing field for American businesses, others warn it could backfire by discouraging cross-border trade and fueling retaliatory measures from trading partners. As the dust begins to settle, one thing is clear: the era of duty-free online shopping from abroad is over, at least for now, and the world’s postal networks are scrambling to keep up.
With the end of the 'de minimis' exemption, both the global shipping industry and American consumers find themselves navigating uncharted territory—one defined by new costs, shifting rules, and a period of significant adjustment.
