The de minimis tax rule has long been a loophole that allowed ecommerce giants like Amazon, Shein, and Temu to import low-value shipments into the United States duty-free. 

However, recent policy changes under the Trump administration have drastically altered this field. The revocation of the $800 duty-free exemption means that millions of small packages from China imports US will now be subject to tariffs, increasing costs for sellers and reshaping international trade regulations. 

With the suspension of the de minimis rule, platforms like Temu, Shein Online, and Amazon Temu sellers will need to reassess their pricing strategies and supply chains to accommodate the new costs.

The 10% tariff reinstatement on $300 billion worth of Chinese imports, along with increased customs scrutiny, will create logistics bottlenecks, slowing down cross-border shipping. 

This shift is particularly concerning for small and medium-sized ecommerce sellers who depend on low-cost imports to remain competitive.

As these regulatory changes take effect, Amazon sellers must adjust their fulfillment strategies, reassess tariff classifications, and explore supply chain diversification to mitigate financial impacts. 

What is the De Minimis Provision?

The de minimis provision is a US trade policy that exempts low-value shipments from customs duties and tariffs. Historically, the threshold for duty-free imports was set at $200, but in 2016, it was raised to $800 under the Trade Facilitation and Trade Enforcement Act (TFTEA). 

This increase significantly benefited ecommerce sellers, allowing them to import individual packages valued under $800 duty-free, reducing costs for platforms like Amazon, Shein, and Temu App. 

Under the Section 321 de minimis rule, importers could ship products directly to customers without incurring duties, making de minimis shipping a cost–effective strategy for businesses sourcing products from China. 

However, the new de minimis rule changes have ended this exemption, impacting ecommerce retailers that relied on de minimis importation to cut costs. 

Why is the Trump Administration Targeting De Minimis Tax Rule?

The Trump administration has justified these changes as a means of curbing unfair trade practices and reducing reliance on Chinese imports. 

Critics have long argued that the de minimis loophole allowed companies like Shein Online, Temu, and Amazon to flood the market with low-cost Chinese goods, undercutting US manufacturers and circumventing trade tariffs. 

By eliminating the de minimis tax exemption, the administration aims to increase tax revenue, level the playing field for US businesses, and tighten customs enforcement. 

The New York Trump loophole crackdown also addresses concerns about the lack of regulatory oversight on de minimis shipments, which made it easier for counterfeit goods, unsafe products, unsafe products, and tariff-evading imports to enter the US market.  

Overhaul of the De Minimis Rule: Section 201, 232, and 301 Goods’ Subjection to the Duties

With the elimination of de minimis importation privileges, goods previously exempt from Section 201, Section 232, and Section 301 tariffs will now be subject to full duty rates. 

This change means that items such as electronics, apparel, and consumer goods, often imported from China imports to US, will face significant cost increases. 

Impact on Sellers 

For Amazon and Temu de minimis sellers, these changes mean higher import costs, increased customs processing times, and potential disruptions in supply chains. 

Many ecommerce sellers who relied on de minimis shipping for their business models will need to either absorb additional costs or pass them on to consumers. 

How Will Shein, Temu, and Amazon Sellers Be Impacted by Changes to the De Minimis Tax Rule?

The new policy directly affects fast-fashion brands like Shein and budget-friendly platforms like Temu, which rely on low-cost, duty-free imports. 

These platforms have historically used de minimis shipping to bypass tariffs and keep prices competitive. However, without the de minimis provision, their entire business model will be disrupted. 

10% Tariff Reinstatement on $300B of Chinese Imports 

A major component of the de minimis rule changes is the reintroduction of a 10% tariff on $300 billion worth of Chinese goods. 

This policy will impact nearly every Chinese imported US category, making it more expensive for sellers to source products from China. 

This move is expected to hit Amazon sellers, dropshippers, and wholesalers particularly hard, as many rely on low-cost Chinese goods to maintain profit margins. 

De Minimis Tax Rule Suspension for Chinese Goods 

The new de minimis rule eliminates duty-free status for Chinese imports, meaning that all packages, regardless of value, will now be subject to tariffs and duties, which will require new customs declarations, increased documentation, and additional compliance measures, complicating the import process. 

Logistics Bottlenecks after De Minimis Tax Rule

With the suspension of the de minimis tax exemption, port congestion, and customs delays are expected to increase as more shipments require manual inspections. 

This will result in longer delivery ties for customers and higher operational costs for sellers. 

Strategies to Mitigate Amazon Tariffs in 2025

Consult an Imports Specialist to Review Tariff Classifications 

Amazon sellers should work with import specialists to ensure that their goods are classified correctly, helping to reduce duties and compliance risks. 

Fulfillment Strategy Optimization 

By using regional fulfillment centers and warehouses, sellers can minimize direct imports, thus reducing exposure to tariffs. 

Adaptive Pricing Against Tariff Fluctuations 

With tariffs increasing costs, sellers must adjust pricing models accordingly while ensuring competitive pricing strategies to retain customers. 

Supply Chain Diversification 

To minimize dependency on Chinese suppliers, businesses should explore alternative manufacturing sources in Vietnam, India, and Mexico. 

Automate Compliance

Using automated customs compliance solutions, sellers can streamline paperwork, monitor duty rates, and stay up to date on policy changes.

Frequently Asked Questions (FAQs)

How Does The De Minimis Tax Rule Change Impact Amazon Sellers?

The elimination of the $800 de minimis threshold means that all low-value imports from China will now be subject to tariffs and customs duties, increasing costs for Amazon, Temu, and Shein sellers. 

Do the Prices on Temu Change Throughout the Day?

Yes, Temu de minimis sellers frequently adjust prices due to fluctuating import costs, tariff adjustments, and supply chain disruptions.

What is The Best Way to Reduce Tariff Costs As an Amazon Seller?

The best strategies include working with an import specialist, diversifying supply chains, using regional fulfillment centers, and automating compliance.