U.S. to End Duty-Free De Minimis Treatment

The United States has announced that, effective August 29, 2025, the “de minimis” duty-free treatment for imports will be suspended for all countries. The de minimis policy currently allows shipments of goods valued at under USD $800 from most nations to enter the U.S. duty-free with minimal customs processing.

However, the suspension of this policy was announced and subsequently paused earlier this year as part of a series of executive orders from President Donald J. Trump. On April 2, the pause was lifted for imports from China and Hong Kong, and the same treatment is planned for all other countries on August 29.

This change will significantly impact Canadian exporters, particularly those operating in e-commerce, direct-to-consumer, and fulfillment center models, many of which rely on the de minimis policy to remain efficient and competitive when selling to U.S. customers.

Key impacts of the policy suspension will include the following:

• All goods exported to the U.S. will now be subject to duties, regardless of origin or value.

• Exporters of low-value shipments will face increased compliance and documentation requirements.

• Customers in the U.S. may experience potential cost increases and delivery delays for small parcels.

• E-commerce and direct-to-customer operators may need to reassess logistics strategies to avoid potential disruptions.

Businesses should begin evaluating their U.S. supply chain, customs brokerage processes, and landed cost models in preparation for this shift. Early adaptation will be key to maintaining competitive delivery timelines and price points once the suspension takes effect.

Further details on the implementation of this policy change can be found in the White House executive order issued on July 30, 2025, titled “Suspending Duty-Free De Minimis Treatment for All Countries.”

If you have any questions or concerns about the potential impact of this development on your organization, please contact the Ryan Customs Duty team.

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