The end of de minimis: What it means for SMBs—and what comes next

Today marks a seismic shift in how global commerce flows into the U.S.—and for small businesses, it brings both pressure and possibility.

The long-anticipated shutdown of the de minimis loophole is now official. As of May 2, 2025, all shipments from China and Hong Kong—regardless of value—must go through full customs clearance and are subject to new tariffs. This ends a decades-old shortcut that many ecommerce sellers relied on to move goods quickly and duty-free.

While headlines are focused on mega-platforms like Temu and SHEIN, the impact goes far beyond them.

At Saltbox, we’re focused on what this means for you: the founder navigating supply chains, the operator managing slim margins, the seller building something real.

What just changed?

The de minimis rule (Section 321) has long allowed U.S. consumers to receive international shipments under $800 without paying import duties or going through formal customs.

That exemption is now gone—but only for shipments from China and Hong Kong.

From today forward, every package from those two markets must clear customs and face new tariffs, no matter the value.

So… What tariffs are we talking about?

Here’s where things get confusing—so let’s break it down clearly:

If you're shipping via postal services (e.g., China Post → USPS):

• May 2–31, 2025: A flat fee of $100 per item or 120% of the item’s value, whichever is higher.
• Starting June 1, 2025: That jumps to $200 per item or 120% of value.

If you're using express carriers (FedEx, UPS, DHL):

• No flat fees—instead, your packages are now subject to standard U.S. tariffs based on product classification (HTS codes).
• Tariffs range widely—from 5% up to 145%, depending on what you're shipping.
• Surcharges apply: For example, FedEx now charges $4.50 or 2% of the collected duties, whichever is higher, for customs processing.

This means two different importers shipping the same product could pay very different amounts, depending on how they ship.

Where you’ll feel this first

If you compete with Temu, SHEIN, and Co...

You may finally be on a more level playing field. These platforms built their U.S. advantage on tax avoidance and rapid shipping through de minimis. That edge? It's gone.

For U.S.-based sellers—especially in apparel, beauty, home goods, and accessories—this may be the moment price parity starts to return.

If you used de minimis to ship directly to customers...

This is real. Your small-parcel imports from China just got more expensive and more complicated. Expect:

• Steep new tariffs
• Customs paperwork on every shipment
• Potential delivery slowdowns

That said: you’re not alone. Every seller using the old loophole is now operating under the same rules. Your edge now comes from brand, fulfillment agility, and how you adapt.

If you import via ocean or consolidated air freight...

You're not directly affected by , because it never applied to bulk freight shipments in the first place. Whether you ship via container, LCL, or palletized air cargo, your goods have always gone through full customs clearance and been subject to standard duties.

But ripple effects still matter. As Customs and Border Protection (CBP) reallocates resources to handle the surge in small-package clearances and as express carriers strain under new parcel workflows, you may still experience:

• Increased port congestion
• Longer dwell times
• Shifting inspection priorities
• Fee or schedule changes at downstream touchpoints

Even if de minimis never touched your operations directly, its rollback could reshape the shipping environment around you.

What about express carriers?

UPS, FedEx, DHL—all were instrumental in enabling de minimis fulfillment. They're now adjusting to a flood of parcels requiring full customs clearance.

Here’s what we’re seeing:

• Backlogs at major hubs (JFK, LAX, SFO)
• Longer clearance times (24–48 hours on average)
• Higher express costs and new customs surcharges

💡 Tip: If you ship internationally via express services, talk to your rep now. Ask about new document requirements, timelines, and potential fees—proactivity matters.

What you can do right now

1. Talk to your carrier or customs broker

• Ask how their process has changed.
• Clarify documentation needs, tariffs, and any new surcharges.

2. Audit your supply chain

• If you’ve relied on < $800 shipments from China, stress-test your margins and delivery flow.
• Review Incoterms—who’s now responsible for duties and fees?

3. Communicate early with customers

• If shipping times or prices will change, get in front of it. Set expectations clearly to preserve trust.

4. Diversify sourcing if possible

• Consider Vietnam, India, Mexico—or even domestic options.
• Explore tariff-free partners under USMCA or CAFTA-DR agreements.

5. Test strategic price increases

• Consider modest increases ($1–$3) paired with messaging around quality and reliability.
• Use honest language to communicate with customers about why you’re increasing prices—transparency matters.
• Benchmark competitors—don’t move in a vacuum.

What we’re watching next

This is just the beginning. Here are the open questions we’re tracking:

• How fast will express carriers stabilize operations?
• Will Macau be added to the ban list?
• Will Congress expand this policy to cover more countries?
• How will China respond—and what retaliatory measures may follow?

We'll continue monitoring these developments—and sharing timely insights to keep you ahead of the curve.

ICYMI: Our past coverage

Catch up or dive deeper:

• Mastering Business Operations Amid Tariff Changes
• The De Minimis Update: A New Chapter for Small Business Competition
• Trump Tariffs 2025: What’s Changing and Why It Matters

Bottom line

This isn’t a rupture—it’s a reset.

Some Saltbox members will feel immediate relief as pricing gaps close. Others will need to rethink sourcing, pricing, and fulfillment strategies.

But everyone will benefit from staying informed—and staying close to partners who can help navigate this new landscape.

At Saltbox, we’ve helped hundreds of entrepreneurs manage complex logistics changes before—and we’re here to do it again. If you’ need clarity, community, or operational support, shoot us an email at experts@saltbox.com and we'd be happy to help.