From August 29, 2025, a major shift in U.S. trade policy will come into effect — the end of the so-called ‘de minimis’ rule.
For years, this regulation let individuals in the U.S. import goods valued under $800 without paying customs duties — a setup that enabled millions of consumers access items from overseas in an affordable way, and supported a thriving network of small sellers on platforms like eBay and Etsy.
But that’s all about to change.
So, what’s happening — and why?
From 29 August, goods shipped to US will face one of two tariffs: an “ad valorem duty” equal to the effective tariff rate of the package’s country of origin or, for six months, a tariff of between $80 and $200 (depending on the country of origin’s tariff rate).
The de minimus rule is being axed two years earlier than planned, with the decision to fast-track the policy shift coming off the back of pressure from campaigners who argue that the de minimis rule has become a back door for fentanyl trafficking — and a loophole that’s allowed a surge of cheap, untaxed imports to undercut U.S. retailers and manufacturers.
Why this matters for online sellers
For sellers operating via marketplaces like Etsy — many of whom are sole traders or small businesses — the impact could be brutal. Etsy alone hosts 5.6 million active sellers, the vast majority of which are individuals rather than large-scale businesses.
And for eBay, the change has already set alarm bells ringing. During a recent earnings call, the company warned that this policy could significantly affect the volume and value of cross-border transactions on the platform.
But the headaches don’t stop at the checkout
Aside from the additional cost to buyers, there are real questions about how well the U.S. border infrastructure can handle the new regime. U.S. Customs and Border Protection will now have to inspect and process far more packages for duties — a challenge that could lead to longer shipping times and administrative delays.
This move is designed to level the playing field for American businesses — but for micro-sellers, it risks doing the opposite. By effectively taxing international visibility, the end of the de minimis rule may force smaller players out of the U.S. market altogether, or push up prices for US consumers already squeezed by inflation.
Chris Singleton is the Founder and Director of Ecommercetrix.
Since graduating from Trinity College Dublin in 1999, Chris has advised many businesses on how to grow their operations via a strong online presence, and now he shares his experience and expertise through his articles on the Ecommercetrix website.
Chris started his career as a data analyst for Irish marketing company Precision Marketing Information; since then he has worked on digital projects for a wide range of well-known organizations including Cancer Research UK, Hackney Council, Data Ireland and Prescription PR. He then went on to found the popular business apps review site Style Factory, followed by Ecommercetrix.
He is also the author of a book on SEO for beginners, “Super Simple SEO.”