US SUSPENDS DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES (SUMMARY) Effective August 29, 2025

US SUSPENDS DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES (SUMMARY) Effective August 29, 2025

Section 1:
The U.S. had planned to end duty-free imports for low-value goods to fight smuggling. Now, the systems to collect duties are in place, and duty-free access is being officially removed. This also addresses unfair trade and growing U.S. trade deficits.

Section 2: 
Suspension of Duty-Free De Minimis from August 29, 2025, imports under $800 will no longer be duty-free, no matter where they come from or how they're shipped. Only postal shipments (like India Post or USPS) get temporary partial relief, but even those will face fixed duties. All non-postal shipments must go through full customs processing. 

Section 3: 
Postal packages must now pay a fixed duty depending on the country's tariff rate: - Under 16%: $80/item - 16%-25%: $160/item - Above 25%: $200/item After 6 months, all postal shipments must follow percentage based duty rules. Country of origin must be declared.

Section 4: 
The order starts on August 29, 2025. The Department of Homeland Security will lead enforcement. CBP (U.S. Customs) can require financial bonds from importers and carriers, even for small shipments, to ensure duty payment. 

Section 5: 
'Effective IEEPA Tariff Rate': This rate includes all emergency-related tariffs. Countries under multiple executive orders (like China or Mexico) may face combined (stacked) tariffs. 

Section 6: 
Suspension of Duty-Free De Minimis Imports. If any part of the order is overturned in court, the rest stays valid. Even if extra duties are struck down, the suspension of duty-free imports will continue. 

Section 7: 
This section clarifies that other legal powers remain unaffected. It doesn't give people the right to sue. The cost of implementing this order will be covered by Homeland Security.

 

 

 

 

 


Who Will Be Affected by This Order:

 

  1. eCommerce sellers and small businesses shipping goods under $800 to the U.S.
  2. D2C brands and marketplace sellers
  3. Individuals sending small parcels internationally 
  4. Postal shipments (e.g., India Post): temporarily exempt from full entry but face flat-rate duties 
  5. Exporters from high-tariff countries (China, Mexico, etc.): may face stacked tariffs
  6. Logistics providers and importers: must meet new compliance and bonding rules 

 

 

 

 

 

 



Key Impacts and Where They Are Mentioned:

1. De Minimis Suspended: 

 

  • Affected: Anyone shipping items under $800 into the U.S. 
  • Executive Order Summary: Suspension of Duty-Free De Minimis Imports 
  • EO Reference: Section 2(a) - No more duty-free entry

 

 

2. Formal Customs Entry Needed: 

 

  • Affected: All courier shipments must file entries via ACE system 
  • EO Reference: Section 2(a) - Filing mandatory

3. Postal Shipments Exempt (Temporarily): 

 

  • Affected: Postal network shipments may skip entry but face $80-$200 duty per item
  • EO Reference: Section 2(b), 3(b-c) - Temporary exemption 

4. Effective Aug 29, 2025: 

 

  • Affected: All imports affected from this date 
  • EO Reference: Section 4(a) - Effective date 

5. Stacked Tariffs Apply: 

 

  • Affected: Shipments from countries under multiple Executive Orders 
  • EO Reference: Section 5 - Stacking allowed under EO 14289

Link:- https://www.whitehouse.gov/presidential-actions/2025/07/suspending-duty-free-de-minimis-treatment-for-all-countries/