What Is the De Minimis Exemption, and Why Did It End? (2026 Guide)

What Is the De Minimis Exemption, and Why Did It End?

If you regularly shop on Shein, Temu, or AliExpress, you may have noticed something odd lately: prices have gone up, and checkout now adds charges that weren't there before. The reason behind this shift is the end of a decades-old US customs rule known as the de minimis exemption. In this post, we'll break down what it was, why it ended, and what it means for you.

What Was the De Minimis Exemption?

"De minimis" is a Latin phrase meaning "too small to matter." Under this US customs rule, any package worth $800 or less that entered the country from abroad was allowed in duty-free, with no customs tax at all. The rule was originally meant to cut down on paperwork for small, personal shipments — things like a gift a traveler mailed home.

Over time, though, Chinese e-commerce giants like Shein, Temu, and AliExpress built their entire business model around this loophole — shipping products individually, straight from Chinese warehouses to US doorsteps, each parcel staying just under the threshold to avoid duty.

When and How the Exemption Was Phased Out

The rollback happened in stages:

• May 2, 2025: The de minimis exemption was suspended entirely for goods originating from China and Hong Kong.
• August 29, 2025: The exemption was suspended for shipments from every other country as well.
• February 2026: The suspension was extended further by executive order.

As a result, 2026 is the first full year in which essentially every package from every country — regardless of value — is subject to duty.

How Much Duty Are Shoppers Paying Now?

For goods from China, two tariff layers typically stack on top of each other: roughly 10% under Section 122, plus an additional 25% under Section 301 — putting the combined duty at around 35% on many everyday items. A $15 dress, for instance, now carries roughly $5.25 in extra duty, plus the Merchandise Processing Fee (MPF) on top.

If you want to work out the numbers for your own budget — including how import costs stack up against income and other taxes — a general-purpose tool like Quinet Calculator's USA finance section is a handy starting point for US tax and finance calculations.

How Shein and Temu Have Responded

Both companies have shifted their business models to absorb the impact:

• Temu says all US sales are now handled by locally based sellers, with orders fulfilled from inside the country.
• Shein has been building out US-based warehouses, importing goods in bulk and pre-clearing them before they're sold.

Even so, prices across these platforms have reportedly risen by roughly 20-40% over the past year.

What This Means for Shoppers

If you regularly order from overseas e-commerce sites, keep a few things in mind:

• The price shown at checkout may not be final — extra duty or tax can be added on top.
• In some cases, a separate customs bill may arrive after your package has already been delivered.
• Splitting an order into smaller purchases no longer helps avoid duty, since the exemption threshold itself is gone.

Final Thoughts

The end of the de minimis exemption isn't just a policy footnote — it's directly reshaping global e-commerce and everyday shopping habits. We'll keep tracking how this rule evolves and post updates here on learninggov.com.

References

• NPR — De minimis is ending. What does that mean for U.S. consumers?
• Marketplace — Yep, the de minimis tariff exemption is still suspended
• CBS News — A "de minimis" tariff exemption expires Friday. Here's what that means for shoppers.
• TariffWise — Shein, Temu & AliExpress Tariffs 2026: What You Pay Now
• TariffsTool — $800 De Minimis Rule Ended 2026: What Importers Pay Now

Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or customs advice. Tariff rates, exemptions, and regulations change frequently and can vary by product, country of origin, and carrier. Figures cited here reflect publicly reported rates at the time of writing and may no longer be current. Before making any importing or purchasing decision, please verify details with official sources such as U.S. Customs and Border Protection (CBP) or a licensed customs broker.