United States to Suspend Customs De Minimis Entry for Most Shipments on August 29, 2025

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On July 30, 2025, President Trump signed an executive order entitled “Suspending Duty-Free De Minimis Treatment for All Countries,”1 which eliminates de minimis entry (i.e., duty-free entry into the United States of shipments valued at $800 or less) for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.

Overview of the changes

The executive order declares that “[t]he duty-free de minimis exemption provided under 19 U.S.C. § 1321(a)(2)(C) shall no longer apply to any shipment of articles not covered by 50 U.S.C. § 1702(b) [enumerating narrow exceptions, such as for donations, informational materials and transactions ordinarily incident to travel] regardless of value, country of origin, mode of transportation, or method of entry.”

Basis for the action

The executive order provides four distinct justifications for suspending or continuing the suspension of de minimis entry, each tied to a previously issued executive order.

  • Global suspension of de minimis entry for goods covered by Executive Order 14257 (Reciprocal Tariffs): The executive order states that “it is necessary and appropriate to suspend duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) on a global basis to deal with the emergency declared in Executive Order 14257.”
  • Canada and Mexico: The executive order ties the suspension of de minimis entry with respect to imports from Canada and Mexico to the existing IEEPA-based fentanyl tariffs imposed on those countries under Executive Orders 14193 and 14194, respectively. President Trump previously paused the suspension of de minimis entry for goods from Canada and Mexico in March 2025.
  • China and Hong Kong: The executive order ties the continued suspension of de minimis entry with respect to imports from China and Hong Kong to the existing IEEPA-based fentanyl tariffs imposed on those countries under Executive Order 14195. The suspension of de minimis entry for goods from China and Hong Kong, which took effect in April 2025, will continue.

Separate process for postal entries

The executive order establishes an exception for shipments sent through the international postal network, introducing new duty rates for such shipments. Duties must be assessed on these goods using either of the two methods below, but the specific methodology is available for only six months, after which all applicable shipments must comply with the ad valorem duty methodology.

  • Ad valorem duty: A duty equal to the effective tariff rate imposed under IEEPA applicable to the country of origin of the product, assessed based on the value of each shipment.
  • Specific duty: A duty ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product.

Background

This executive order sharply accelerates the Trump administration’s plans to dismantle de minimis entry. President Trump’s centerpiece domestic policy bill, the “One Big Beautiful Bill Act,” signed on July 4, 2025, permanently repeals the statutory basis for the de minimis exemption starting on July 1, 2027.

The Trump administration has also moved to prohibit use of de minimis entry through the tariffs enacted under the International Emergency Economic Powers Act (IEEPA). President Trump’s IEEPA-based fentanyl tariffs on China, Canada and Mexico, as well as IEEPA-based global baseline and reciprocal tariff orders, include provisions to prohibit use of de minimis entry once the Secretary of Commerce notifies the president that adequate systems are in place to efficiently process and collect tariff revenue. In April 2025, President Trump ordered the implementation of this provision specifically for China and Hong Kong. Currently, de minimis entry is still permitted for all other countries of origin, but this will end on August 29, based on the new executive order.

The Trump administration has been focused on de minimis entry, which it argues facilitates deceptive shipping practices, duty evasion and illegal shipments (including of fentanyl). The White House Fact Sheet notes that the volume of de minimis shipments has “skyrocketed” in 2025, “with 309 million so far for FY25 (through June 30), compared to 115 million for all of FY24 resulting in significant lost revenue for the United States.”

1 Executive Order of July 30, 2025: “Suspending Duty-Free De Minimis Treatment for all Countries,” and Fact Sheet: “President Donald J. Trump is Protecting the United States’ National Security and Economy by Suspending the De Minimis Exemption for Commercial Shipments Globally,” July 30, 2025.

We provide below a list of partners and senior attorneys within the Global International Trade Practice of White & Case. Please contact any of them with questions about this report or other trade issues.

White & Case means the international legal practice comprising White & Case LLP, a New York State registered limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law and all other affiliated partnerships, companies and entities.

This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.

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