Big changes are coming for U.S. e-commerce brands importing from China. Starting May 2, 2025, the de minimis exemption ($800 duty-free threshold) will no longer apply to Chinese goods, including those from Hong Kong, per an executive order.
If your business relies on direct fulfillment from China to the U.S., this closure will mean changes for how you report your customer shipments to CBP. But here’s the good news: this doesn’t have to be the end of cross-border selling - it might just be the push you need to expand globally.
The U.S. de minimis exemption allows shipments valued at $800 or less to enter the country duty-free with expedited clearance. It’s been a game-changer for e-commerce brands, keeping costs low and delivery times fast.
But right now, with a 145% tariff on Chinese imports, the U.S. market is becoming far less profitable for many brands. So, what’s the alternative?
Just because the U.S. is tightening restrictions doesn’t mean other countries are following suit. Many major markets still offer de minimis thresholds, making them cost-effective.
Surprisingly, many of our brands are finding it cheaper - and easier - to ship to Europe than to the U.S. right now, so the EU could be a great option for your brand.
We know this is a stressful time for e-commerce brands. But with the right strategy, this change could open doors to even bigger opportunities.
If the U.S. market is no longer sustainable for your brand, now’s the time to explore global expansion. At Portless, we specialize in helping brands navigate these changes easily. We ship to over 55+ countries while maintaining a total domestic customer experience. Through our Vietnam fulfillment centers, brands can continue to benefit from de minimis advantages for U.S. shipments while expanding into new international markets where the provision still applies.
If you're ready to see how your brand can leverage de minimis in other markets, schedule a risk assessment today!
