Duty-Free Shipping Exemption Ends, Small Importers Face Higher Costs

A major policy change is reshaping how small businesses import goods into the US. The Trump administration has officially ended the long-standing de minimis tariff exemption, which previously allowed international packages under $800 to enter the country duty-free.

According to AP News, this move eliminates a loophole that supported cross-border e-commerce. For many small retailers and niche importers, the change means higher costs, more paperwork, and potential delays.

What’s Changing

• The exemption for shipments valued under $800 is no longer in effect.
• Businesses importing even low-cost items will now face tariffs ranging from 10% to 50%.
• For the next six months, shippers can use a flat fee system of $80–$200 per package, depending on the origin. After that, standard duties will apply.

Why It Matters for Small Businesses
Small shops, online boutiques, and independent retailers often rely on affordable international supplies—whether it’s fabrics, specialty foods, or craft products. Without the exemption, costs will rise across these sectors, and many entrepreneurs will be forced to adjust pricing or absorb tighter margins.

Platforms such as Etsy, eBay, and Shopify are already feeling the effects, with sellers reporting shipping disruptions and customers facing unexpected charges. For business owners who built their models around affordable imports, this policy shift creates serious uncertainty.

Looking Ahead
The administration has framed the change as a way to combat smuggling and strengthen domestic manufacturing. While some U.S. producers may benefit, smaller importers and their customers could be squeezed in the process.

For Gayle Smith Gay, a longtime advocate for small businesses, the focus now is on adaptation. Entrepreneurs may need to explore domestic sourcing, renegotiate shipping contracts, or find creative ways to maintain customer loyalty despite higher costs.

This policy change is more than a trade story—it’s a reminder of how quickly regulations can reshape the small business environment. Owners who stay informed and agile will be best positioned to weather the challenges ahead.