On July 30, 2025, President Donald Trump signed an executive order that suspends the long-standing de minimis exemption for low-value commercial shipments entering the United States from all countries. Effective August 29, 2025, this order closes the tariff loophole that previously allowed goods valued at $800 or less to enter the U.S. without paying import duties. The White House characterized this exemption as a “catastrophic loophole” exploited to evade tariffs and facilitate the influx of synthetic opioids and other unsafe or underpriced products into the American market.
The de minimis exemption had been a key factor enabling low-cost online retailers, including giants such as Shein and Temu, to ship inexpensive goods directly to U.S. consumers without the added cost of tariffs. This exemption originally aimed to reduce customs processing burdens on trivial imports, but after its threshold was raised to $800 in 2016, the volume of duty-free packages surged dramatically, reaching over 1.4 billion entries in 2024 alone, many of which originated from China.
Previously, the Trump administration had taken steps to limit this exemption for certain countries, notably China and Hong Kong, in early 2025 amid concerns about unfair trade practices and public safety. With this latest order, the suspension is expanded to include all countries globally, making it a comprehensive policy to level the playing field for American manufacturers and retailers while addressing national emergencies tied to trade deficits and illicit drug trafficking.
From August 29, shipments valued at $800 or less entering the U.S. through means other than the international postal system will be subject to all applicable tariffs, duties, taxes, and fees. Packages sent via international postal networks will have duties assessed based on tariff rates under the International Emergency Economic Powers Act (IEEPA), with options for ad valorem or specific duty assessments for a transitional period of six months before full ad valorem duties apply.
This policy shift is poised to deliver significant impacts on global e-commerce and trade flows, requiring shippers and retailers to adjust their logistics and pricing strategies. Businesses relying on frequent, small shipments to serve U.S. consumers may transition to bulk importing and domestic warehousing to mitigate tariff costs and maintain competitiveness3.
Impact on E-commerce from Thailand
Thailand, as an emerging player in global e-commerce and a notable exporter of low-value consumer goods—such as apparel, accessories, and small electronics—will feel the repercussions of this policy change on shipments to the U.S. market.
Thai exporters and online merchants who have benefited from the previous de minimis exemption by shipping parcels valued under $800 duty-free will now face increased costs due to tariffs. This shift is expected to:
- Increase the landed cost of Thai goods for U.S. consumers, which may reduce price competitiveness compared to domestic and other international sellers.
- Encourage Thai sellers and platforms to reconsider shipment sizes and frequencies. Instead of numerous small-value parcels, sellers might consolidate shipments to surpass the $800 threshold or use U.S.-based warehouses to avoid repetitive tariffs.
- Potentially slow down order fulfillment and increase inventory holding costs as businesses adapt their supply chains to new tariff environments.
- Prompt greater scrutiny of product classification and country-of-origin declarations to manage duty liabilities efficiently, requiring better export compliance infrastructure.
Moreover, sectors in Thailand heavily integrated into the U.S. e-commerce ecosystem—such as fashion, personal care, and electronics accessories—may need to absorb tariff costs or pass them on to consumers, potentially dampening demand.
Trade experts suggest that unless Thai exporters innovate their logistics and supply chain practices or negotiate bilateral trade agreements mitigating tariff effects, the overall volume of low-value direct shipments from Thailand to the U.S. is likely to decrease. This could affect small and medium-sized enterprises (SMEs) which rely on e-commerce platforms for global reach.
In conclusion, the suspension of the de minimis exemption marks a significant shift in U.S. trade policy, with wide-ranging consequences for global e-commerce and international suppliers, including those from Thailand. While intended to protect American industries and curb illicit trade practices, it introduces new complexities for cross-border commerce that will require prompt strategic adaptation by exporters worldwide.
- https://www.bbc.com/news/articles/c939q47xlleo
- https://www.cnbc.com/2025/07/30/trump-de-minimis-shipping.html
- https://www.jdsupra.com/legalnews/president-trump-issues-executive-order-2916584/
- https://www.whitehouse.gov/presidential-actions/2025/07/suspending-duty-free-de-minimis-treatment-for-all-countries/
- https://www.webpronews.com/trump-ends-de-minimis-exemption-for-800-imports-targets-china/
- https://www.websitebuilderexpert.com/news/trump-ends-de-minimis/
- https://www.cbsnews.com/news/trump-ends-de-minimis-loophole-on-imports/
- https://www.bloomberg.com/news/articles/2025-07-30/trump-ends-de-minimis-tariff-exemption-for-low-value-goods
- https://members.asicentral.com/news/industry-news/july-2025/trump-ends-de-minimis-exemption-with-executive-order/
- https://www.valueaddedresource.net/trump-ends-de-minimis-exemption-august-29-2025/
