Effective date: August 29, 2025 (12:01 am ET)
The United States has suspended duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for low-value imports from all countries.
Most shipments that previously entered duty-free at ≤ $800 USD are now dutiable and must meet full admissibility requirements.
For more background and an overview of the steps ecommerce businesses can take to adapt to these market changes, see our advisory blog post.
What has happened #
As of August 29, 2025, the United States (US) no longer offers duty-free treatment on imports valued under $800 USD. All packages — regardless of size or cost — are now potentially subject to customs duties.
The decision stems from an executive order signed on July 30, 2025, which triggered the change.
Why it matters #
- In 2024 alone, over 1.36 billion shipments to the US came under the de minimis exemption. These changes are likely to significantly alter the number of low-value imports into the US, and add additional cost and administrative overhead for future shipments
- Many postal services (like Royal Mail, Deutsche Post, Australia Post) have temporarily paused shipments to the US while they adjust their processes.
- Private carriers, including UPS and DHL Express, are continuing normal operations. While their shipments are also subject to new duties, they have robust systems in place to manage customs clearance.
- Longer customs processing times are expected, potentially causing delayed deliveries.
- As a business owner, you may need to make some changes to your operations to manage your shopper’s expectations, and control your costs.
How duties now work #
- Non-postal (courier/freight)shipments: These must go through customs entry — duties, taxes, and fees apply. You can structure your shipping terms so that either you cover these costs (Delivered Duty Paid, DDP) or your customer pays them on delivery (Delivered Duty Unpaid, DDU).
- Delivered Duty Paid (DDP): You, the seller, collect and pay all duties, taxes, and fees for the shipment upfront. Your buyer sees the full landed cost at checkout and will not face surprise charges on delivery.
- Delivered Duty Unpaid (DDU): You ship the order without covering duties/taxes. The buyer pays these charges on arrival, which can cause delays, extra costs, or potentially unhappy customers.
- Postal shipments: Once postal services adjust their workflows and resume US deliveries, merchants should expect higher postage costs. This is because postal carriers must now pre-collect US duties at the point of shipping, bundling those charges into the label price.
How WooCommerce stores can adapt #
Stores selling and shipping to the US: #
- Switch to DDP (Delivered Duty Paid): Implement duty/tax estimates at checkout via one of our trusted partners, so your shoppers can see and pay the full landed cost up front.
- Recommended tools for tax and shipping help:
- Use Harmonized Tariff Schedule (HTS) codes, product value, and country of origin to get accurate duties.
- Recommended tools for HTS compliance:
- Communicate clearly: Let customers know upfront that international shipping now includes customs duties and could take longer.
US-based stores #
- If you are importing your inventory from abroad, being transparent with your customers about any delays or cost increases as a result of these changes can help maintain a strong relationship with them.
- This could be a good opportunity to step up your marketing and take advantage of lower competition from international sellers.
- Recommended marketing tools for responding to new tariffs:
