Duty-Free De Minimis Exemption Suspended for All Countries

July 31st, 2025 – An executive order from President Trump formally suspends the duty-free de minimis exemption for most low-value imports, citing national emergencies related to drug trafficking from Canada, Mexico, and China, as well as chronic U.S. trade deficits. The suspension applies globally to non-postal shipments, which will now be subject to all applicable duties and must be entered through the Automated Commercial Environment (ACE). Postal shipments remain temporarily exempt but will face new flat-rate or ad valorem duties based on country-specific tariff bands. The move aims to close loopholes exploited by traffickers and tariff evaders, strengthen border enforcement, and ensure the effectiveness of trade-related national security measures.

Key Actions

1. Global Suspension:

   • De minimis treatment is now suspended for all non-postal shipments, regardless of value, country of origin, or mode of transport.

   • These shipments are subject to all applicable duties, taxes, and fees and must be entered via the Automated Commercial Environment (ACE).

2. International Postal Shipments:

   • Postal shipments remain temporarily exempt from full entry requirements.

   • Duties will still apply using one of two methods:

     • Ad valorem: based on the IEEPA tariff rate for the country of origin.

     • Specific rate: per-package flat fee based on the IEEPA tariff band:

       • <16% tariff: $80 per item

       • 16–25% tariff: $160 per item

       • 25% tariff: $200 per item

   • Carriers can use the specific duty method for 6 months, then must switch to ad valorem.

3. Country-Specific Suspensions:

   • Duty-free de minimis treatment is formally suspended for low-value imports from:

     • Canada (per EO 14193)

     • Mexico (EO 14194)

     • China and Hong Kong (EO 14195)

   • This is to reinforce tariff effectiveness and counter evasion and drug smuggling.

4. Implementation & Enforcement:

   • Effective August 29, 2025, at 12:01 a.m. EDT.

   • U.S. Customs and Border Protection (CBP) is authorized to:

     • Enforce bond requirements.

     • Oversee carrier compliance and duty remittance.

     • Modify the Harmonized Tariff Schedule as necessary.

Read the full Executive Order here: Suspending Duty-Free De Minimis Treatment for All Countries – The White House

Should you have any questions, please contact our Import Compliance team or call us at 518-785-6000.