De Minimis Exemption: Overview, Threshold, Example

What Is the De Minimis Exemption?

By Jeremy Bowman – Updated Nov 20, 2025 at 4:56 PM EST | Fact-checked by Frank Bass

Key Points

De minimis exemption ended, adding import taxes on goods worth less than $800.
Companies like Tapestry face increased costs, lowering profits.
Tariff policies may change, suggesting ongoing investment risks.

Previously a little-known concept in customs duties, the de minimis exemption has gotten a lot of attention in 2025. Prior to changes in tariffs under the Trump administration, importers were allowed to bring in goods valued at less than $800 without paying duties or taxes. They also received expedited clearance, speeding up shipping times for low-value goods.

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A container ship covered with shipping containers tied at a dock. — Image source: Getty Images.

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Tariff policy has been fluid, so the suspension could possibly be reversed, but companies are adapting to doing business without it. Much like with other tariffs, companies such as Lululemon are negotiating with vendors and selectively raising prices, in addition to reexamining their distribution center networks for adjustments that can be made.

Independent e-commerce sellers that sell on marketplaces like Amazon, eBay, and Etsy are also getting hit hard. Last year, 1.36 billion shipments arrived under the de minimis exemption with a declared value of $64.6 billion. So, the removal of the exemption is leading to billions of dollars of additional tariffs.

After the de minimis exemption was removed on goods from China in May, imports from that country fell by about a third. China was the source of about 70% of shipments under $800, but the expansion of the policy to all imports has affected a broader swath of companies. Independent sellers will have a harder time finding ways around the new fee, which could affect companies like Etsy, eBay, and Shopify.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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Jeremy Bowman has positions in Amazon, Lululemon Athletica Inc., and Shopify. The Motley Fool has positions in and recommends Amazon, Etsy, Lululemon Athletica Inc., Shopify, and eBay. The Motley Fool recommends Tapestry. The Motley Fool has a disclosure policy.