U.S. Collects Over $1 Billion in De Minimis Tariff Revenue After Ending Duty-Free Import Exemption, Changing Online Shopping Economy

WASHINGTON, D.C. — The U.S. government has collected more than $1 billion in de minimis tariff revenue since it eliminated the duty-free import exemption for low-value international packages earlier in 2025, according to new data shared by U.S. Customs and Border Protection. The policy shift marks a significant change for online shoppers, e-commerce sellers and cross-border trade, reshaping how the U.S. economy handles small shipments.

The de minimis tariff exemption previously allowed foreign goods valued at under $800 to enter the United States without paying import duties or customs fees — a rule that fueled rapid growth in low-cost online shopping, especially from Chinese e-commerce platforms like Shein, Temu and Alibaba. With the exemption rolled back this year, those small packages are now subject to standard tariffs, contributing to a substantial new revenue stream for the U.S. government.

Why Ending Duty-Free Imports Matters for Shoppers and Retailers

For years, the de minimis customs rule under Section 321 of the U.S. Tariff Act allowed millions of low-value packages to bypass traditional tariff enforcement and duty payments, reducing costs for American consumers and simplifying customs processing.

But in August 2025, the U.S. government formally ended this duty-free treatment for most imports, requiring tariffs and duties to be applied to parcels valued at $800 or less. This change has had ripple effects on e-commerce purchasing habits, small-business exports, and pricing for international goods entering the U.S. market.

According to Customs and Border Protection data, the elimination of the exemption generated more than $1 billion in tariff revenue in just a few months — a sharp contrast to the previous system, which collected little to no duties on low-value parcels.

Consumers Feel the Impact of Higher Costs

With the de minimis exemption removed, many U.S. shoppers report paying higher prices for items they once purchased cheaply online, especially fashion, accessories and small electronics. Some consumers say they have cut back on impulse buys from foreign sellers because of added tariffs and duties.

“Before this policy change, I relied on low-priced overseas products for gifts, clothes and accessories,” said one American online shopper. “Now, I’m paying a lot more in fees, and it’s making me think twice before ordering overseas.” Critics of the policy argue that eliminating the exemption has reduced purchasing power for everyday consumers and made cross-border online shopping more complicated.

Retailers and E-Commerce Sellers Adjust to New Tariff Rules

Small and mid-sized online retailers that depended on the de minimis loophole also face challenges. Without the exemption, many foreign sellers must now calculate and collect tariffs before shipping to the U.S., adding layers of compliance and pricing complexity to their businesses.

“It’s definitely reshaping how we approach international markets,” said one e-commerce entrepreneur. “Tariff impacts are now a major part of pricing strategy and logistics planning.” Experts warn that these changes might push some sellers to rethink how they serve the U.S. market if compliance costs continue to rise.

Policy Goals and Trade Enforcement

Government officials say the shift was intended not only to increase tariff revenue but also to level the playing field between domestic and foreign sellers. The old de minimis exemption allowed many imported goods to avoid duties that American manufacturers and retailers must pay, raising concerns about fairness and trade balance.

The elimination of this duty-free exemption also ties into broader U.S. trade policy, including ongoing tariff adjustments on products from China and other major trading partners. These changes reflect an administration strategy focused on economic competitiveness and strengthening domestic industry.

What Americans Should Know Going Forward

As the tariff system continues to adapt, consumers and businesses alike should expect:

• Higher base prices and tariffs on most international packages previously exempt under de minimis rules.
• Greater customs paperwork and compliance requirements for cross-border sellers shipping to U.S. customers.
• Potential changes in online shopping patterns, especially for low-cost imported goods.

Tariff experts say the $1 billion in new revenue is a notable milestone, but ongoing discussions — including possible future adjustments to de minimis thresholds and broader trade reforms — could further influence the flow of global commerce.