Understanding De Minimis

What It Means for Retailers and Consumers

By [ Blake Harden ]
06/10/2025

The de minimis threshold is a key concept in U.S. customs law that allows low-value shipments to enter the country duty-free. Currently set at $800, this threshold means that commercial shipments valued below this amount can bypass tariffs and formal customs procedures. This rule has significant implications for both retailers and consumers, particularly with the growth of e-commerce.

The de minimis threshold creates a complex playing field for retailers. Domestic businesses importing goods in bulk must pay duties and comply with extensive U.S. laws and regulations, while some foreign sellers can ship directly to U.S. customers without the same obligations.

By executive order, President Trump has moved to eliminate the de minimis threshold for all imports from China – a restriction that took effect on May 2nd. The President has also included language in other executive orders indicating that the administration may try to restrict de minimis from other countries as well.

Supporters of the de minimis threshold argue that it encourages e-commerce and benefits consumers by providing access to a broader range of products, while not requiring individual American consumers to be responsible for providing certain information and the payment of duties to U.S. customs.

Critics of the provision, on the other hand, contend that the de minimis threshold is a loophole that allows some sellers to avoid tariffs and undercut U.S. retailers. They argue that this can lead to unfair competition and negatively impact domestic businesses. Furthermore, critics believe that the provision may incentivize the importation of low-quality or counterfeit goods, posing risks to consumers.

Understanding the de minimis threshold is essential for anyone interested in trade policy and its impact on the retail market. As policymakers consider changes to the threshold or enforcement mechanisms, retailers and consumers alike have a stake in the outcome.