What Changed with De Minimis
For years, the de minimis provision under Section 321 allowed duty-free importation of goods valued at $800 or less per shipment. This exemption was a cornerstone of the direct-to-consumer e-commerce model, enabling platforms and brands to ship individual orders from overseas without incurring customs duties.
That exemption is now suspended — and it's staying that way even after the Supreme Court's IEEPA ruling.
Why It Survived the IEEPA Ruling
When the Supreme Court struck down IEEPA tariffs on February 20, 2026, many assumed the de minimis suspension would fall with them. It didn't. President Trump issued a separate executive order on the same day specifically continuing the suspension of de minimis treatment.
The administration argues that while IEEPA doesn't authorize tariffs, it does authorize the president to suspend de minimis treatment as a regulatory action rather than a duty. This legal distinction is being challenged but remains in effect.
Who's Affected
The suspension hits hardest for:
- E-commerce sellers sourcing products from China and other Asian manufacturers
- Small importers who relied on the $800 threshold for low-volume purchases
- Dropshippers and direct-from-factory business models
- Consumers ordering directly from overseas retailers
Every shipment, regardless of value, now requires formal or informal entry and is subject to applicable duties.
Practical Impact
Increased Costs
Products that previously entered duty-free now carry the full duty burden. For goods from China, this can mean Section 301 duties of 25% or more, plus the Section 122 global tariff of 10%, layered on top of normal MFN duty rates.
Slower Clearance
Without de minimis, low-value shipments require formal customs entry processing. This adds time, paperwork, and brokerage fees to every package.
Changed Economics
Business models built on the assumption of duty-free small shipments need recalculation. For many, the per-unit duty cost now exceeds the profit margin on individual items.
Strategies for Adaptation
1. Consolidate shipments. Instead of shipping individual orders internationally, consolidate inventory into bulk shipments to a U.S. warehouse. The per-unit brokerage and handling costs drop dramatically.
2. Use bonded warehousing. Import in bulk, store in a bonded facility, and fulfill domestic orders from U.S. inventory. Duties are paid only when goods are withdrawn for sale.
3. Evaluate USMCA sourcing. Products manufactured in or substantially transformed in Mexico or Canada may qualify for USMCA preferential treatment, including exemption from Section 122 duties.
4. Review your HTS classifications. Accurate classification is more important than ever. Misclassification can mean paying higher duties than necessary.
5. Work with a customs broker. The complexity of overlapping duty regimes makes professional customs brokerage essential — even for small importers who previously handled clearance themselves.
What Comes Next
The de minimis suspension is likely to face legal challenges, but for planning purposes, importers should assume it will remain in effect through at least the end of 2026. Congress has also shown interest in legislatively reforming the de minimis threshold, with several bills under consideration.
Need help restructuring your import strategy? Our customs team works with importers of all sizes to minimize duty exposure in the current environment. Talk to us.