Texas Border Business
Texas Border Business
On July 30, 2025, President Donald J. Trump signed an executive order suspending the “de minimis” exemption, which had long allowed goods valued at $800 or less to enter the United States duty-free. According to the official order, the suspension applies globally and will take effect at “12:01 a.m. Eastern Daylight Time on August 29, 2025” (White House, Presidential Actions, July 30, 2025).
The de minimis exemption, codified under 19 U.S.C. 1321(a)(2)(C), has been in place for decades. The White House explained in a fact sheet that the policy shift is aimed at addressing “a national emergency characterized by illicit fentanyl trafficking, deceptive shipping practices, duty evasion, and abuse by counterfeiters” (White House, Fact Sheet, July 30, 2025).
The administration highlighted the growth of duty-free shipments in recent years. “Between 2015 and 2024, de minimis shipments rose from 134 million to over 1.36 billion annually,” the fact sheet noted. Officials argued that this surge has strained customs enforcement, facilitating the import of counterfeit goods and illegal substances. “Most seized narcotics, counterfeit goods, and other illicit items originated via de minimis shipments,” the White House stated.
President Trump framed the measure as a step to protect both the U.S. economy and national security. “The suspension of duty-free treatment will ensure that all imports, regardless of value, are subject to the same scrutiny and enforcement,” the executive order said. The White House added that the change “enhances revenue collection and levels the playing field for American businesses.”
Analysts and trade observers have pointed out that the suspension could significantly affect popular e-commerce platforms that rely on low-value imports. According to Axios, companies such as Shein and Temu, which have built their business models around low-cost cross-border shipments, may face new tariffs and logistical hurdles as a result of the policy shift (Axios, July 30, 2025).
The suspension represents one of the most sweeping changes to U.S. customs law in decades. Wired described the move as the end of an “era of frictionless e-commerce imports under $800,” noting that small packages entering the country will now be subject to duties and inspection requirements (Wired, July 30, 2025).
As of August 29, 2025, all imports, regardless of value, will be treated under standard U.S. customs rules. The administration has emphasized that the measure is permanent and applies to “all countries without exception,” marking the complete elimination of the de minimis exemption.
