The End of the US De Minimis Rule: What It Means for Parcel Forwarding Customers

On July 30, 2025, President Donald Trump signed an executive order entitled “Suspending Duty-Free De Minimis Treatment for All Countries.” The order brings forward the elimination of the $800 de minimis exemption, which previously allowed imports valued at $800 or less to enter the United States duty-free.

The exemption will now end on August 29, 2025, almost two years earlier than originally scheduled. Goods originating from China had already been excluded from de minimis rule in May 2025, and the new order extends the removal to all countries.

For years, de minimis has been a cornerstone of cross-border e-commerce, allowing US shoppers to buy low-value goods from abroad without additional costs. Its removal will significantly affect how imports are processed and the costs associated with them.

The end of de minimis marks a fundamental change in how US Customs and Border Protection (CBP) handles low-value imports:

Regardless of value, every parcel entering the US will now be subject to tariffs and taxes. Two tariff calculation options will apply to each shipment:

1. IEEPA reciprocal tariff (based on origin country), or
2. A fixed tariff per item:

• $80 per item (if IEEPA tariff < 16%)
• $160 per item (if IEEPA tariff is 16–25%)
• $200 per item (if IEEPA tariff > 25%)

While the executive order provides a temporary alternative for shipments through the international postal network, it still imposes additional charges:

• Ad valorem duty: Tariffs applied based on shipment value and country of origin.
• Specific duty: A flat charge between $80 and $200 per item, depending on applicable IEEPA tariff rates. This option will only be available for six months, after which ad valorem duties will apply to all shipments.

CBP will need to examine and clear millions of additional parcels that previously bypassed detailed scrutiny. This is expected to result in significant delays, particularly during peak import periods.

For customers who rely on parcel forwarding services to shop with UK, European, and Japanese retailers, these changes will have direct and immediate consequences:

Duties and taxes will need to be collected before goods are dispatched to the United States. This will be based on the IEEPA tariff rate. For example, for shipments with a country of origin in the UK, the rate is 10%; this may be more if the origin is a different country.

Postal services and major international couriers are expected to introduce new administrative and customs handling charges to account for the increased complexity of clearance. These fees will be added on top of existing shipping costs to handle duty/tax collection and remit the amount owed to USPS before the packages arrive in the US.

With every parcel now requiring inspection and duty assessment, the customs clearance process will take longer. Customers should expect delivery timelines to increase compared with the current system, especially in the first weeks after implementation.

As an intermediary between global retailers and US customers, forward2me is directly involved in managing the impact of this regulatory change. We ensure that duties, taxes, and courier fees are applied accurately and transparently to parcels shipped from our warehouses into the US.

We are closely monitoring the evolving situation and are in continuous communication with couriers and authorities. Our priority is to provide customers with timely updates on how these changes will affect shipping costs, delivery times, and the overall experience of forwarding parcels from the UK and beyond to the United States.