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Full Tariff Calculator →What Is the De Minimis Exemption?
Under Section 321 of the Tariff Act, packages valued at $800 or less can enter the US duty-free. This is called the "de minimis" threshold. It was designed for travelers and small personal imports.
The big change in 2026: The de minimis exemption has been eliminated for Chinese goods. Every package from China — even a $5 phone case — now faces import duties. This affects all orders from Temu, Shein, AliExpress, and Alibaba.
For packages from other countries, the $800 exemption still applies — for now. The administration has signaled interest in tightening de minimis more broadly.
Read our full guide: Is the $800 De Minimis Exemption Still Valid for China?
The De Minimis Revolution — And Its End
The $800 de minimis exemption was arguably the most impactful trade provision of the e-commerce era. It enabled Temu, Shein, and AliExpress to build multi-billion dollar businesses by shipping directly to US consumers without paying a cent in duties. In 2024, over 1.3 billion de minimis packages entered the US — the vast majority from China.
That loophole gave Chinese e-commerce platforms a structural 30-50% price advantage over domestic retailers and traditional importers who paid full duties on their goods. A US retailer importing a container of clothing paid 18-32% in MFN duties plus Section 301 tariffs. A Temu seller shipping the same clothing in small parcels paid zero. The playing field was fundamentally uneven.
The elimination of de minimis for Chinese goods in 2025-2026 is one of the most significant changes in US trade policy. It affects millions of consumers who relied on ultra-cheap Chinese goods, thousands of dropshippers whose business model depended on duty-free shipping, and the Chinese e-commerce platforms themselves.
What This Means Going Forward
For consumers, every Chinese order now comes with a tariff bill — either collected at checkout by the platform or billed by the carrier at delivery. The era of $5 items from China with free shipping and no duties is over. For the same price, domestic alternatives on Amazon or Walmart often provide better value once duties are factored in.
For businesses, the de minimis change actually levels the playing field. Traditional importers who always paid duties are no longer at a disadvantage against dropshippers. If you import in bulk, you may actually have a cost advantage now — your per-unit customs broker and shipping costs are lower than the per-package duty collection on small parcels.
The key question is whether de minimis will be tightened further. The administration has signaled interest in eliminating or reducing the threshold for more countries, not just China. If that happens, the impact on international e-commerce would be enormous.