This week, low-value packages from around the world are losing their tariff-free status — the ‘de minimis’ exemption applied to imports valued under $800. But the Trump administration suspended it on goods originating in China in May. And it’s ending the exemption for the rest of the world on Friday. 

The government started giving importers a break on low-value shipments back in the 1930s, mostly to keep things efficient. 

“The de minimis rules were set up to avoid wasting a lot of time to process payments for the import duties,” said Christopher Tang, a supply chain expert at UCLA.

These were payments that were considered negligible at the time.

“Things have changed,” he said.

E-commerce has sent the number of de minimis shipments skyrocketing — to over 90% of cargo entering the U.S. in 2024 — which was worth more than $64 billion, according to U.S. Customs. 

Li Chen, a professor at Cornell, said the federal government is closing what’s become a loophole for e-commerce retailers like Shein and Temu.

“But the devil is in the details,” said Chen.

And the details are confusing, according to overseas retailers and international carriers who say the new rules aren’t clear. And they didn’t get enough time to adjust. 

“It’s extremely chaotic right now,” said Aaron Rubin with the logistics company ShipHero. “There’s a lot of unexpected bills, a lot of delays, a lot of confusion, a lot of mistakes.”

Some international carriers are suspending U.S. shipments altogether until it’s clear how the new system works.

Rubin said this comes ahead of the busiest time of year for global shipping: the holiday shopping season. 

“It’s, uh, I won’t say a disaster,” he said.

But for some online shoppers, including Regina Krause, “It does feel like a disaster.”

Krause buys all her skincare products from Japan and South Korea. She tried to get an order of sunscreen and moisturizer in ahead of the de minimis change, but got a notification this week that her shipment was canceled. 

“It was one thing where it was like, oh you’re gonna have a tax on it, right? And now it’s just, you straight up can’t get it,” she said.

Krause will ask her relatives in Japan to bring some of her favorite products next time they visit the U.S. Until then, she might have to go without.