End of Duty-Free De Minimis: What Executive Order 14324 Means for Your Business

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On July 30, 2025, President Trump signed Executive Order 14324, titled Suspending Duty-Free De Minimis Treatment for All Countries. Beginning on August 29, 2025, shipments entering the United States will no longer qualify for duty-free treatment, except in those limited circumstances. This change applies to all shipments, including those entering through the international mail system, and marks a significant departure from the longstanding practice of allowing low-value imports to enter duty free.

For many years, the de minimis rule allowed shipments valued at $800 or less to enter the United States without the payment of duties or the need for a formal entry. The elimination of this treatment means that every shipment, regardless of value, will now be subject to duties unless otherwise exempt. The administration has explained that U.S. Customs and Border Protection (CBP) is now equipped with the systems necessary to efficiently process and collect duties on these shipments, including those delivered through the international postal network.

Carriers delivering packages into the United States, as well as other parties that CBP approves for this role, are now responsible for collecting and remitting duties. Two methodologies are available to calculate the duties owed. The first, known as the ad valorem method, applies the International Emergency Economic Powers Act (IEEPA) tariff rate for the country-of-origin to the value of each shipment. The second, known as the specific duty method, applies a fixed amount per package depending on the country of origin’s tariff rate. This alternative is only available for the first six months after the order takes effect. Starting on February 28, 2026, all shipments covered by the order must comply with the ad valorem method.

The elimination of de minimis treatment is expected to have broad effects on international trade and e-commerce. Importers, sellers, and consumers who have become accustomed to duty-free entry for small packages will see higher costs and added administrative steps. Foreign sellers that ship directly to U.S. customers will need to reassess pricing and logistics, and U.S. consumers should anticipate changes in shipping practices and costs. Carriers and logistics providers will also bear new compliance burdens, as they are now central to duty collection and reporting under this framework. Businesses involved in international trade should begin preparing for the new requirements immediately.

At the Clark-Esposito Law Firm PC, we don’t do one-size-fits-all. We tailor our services to fit the unique challenges and opportunities our clients are facing, whether it’s U.S. Customs and Border Protection (CBP) enforcement or compliance issues, tariff matters, or navigating the ever-changing landscape of government rules and regulations. From classification and valuation, to record keeping and country-of-origin rules, we design strategic solutions and help businesses stay prepared for the unexpected. Ready to get started? Give our office a call today at (917) 546-6997 or schedule an intake meeting, we would be happy to speak with you.

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