Name: Trump Ends De Minimis Tariff Rule: How Online Shopping Will Change
Uploaded: 2025-08-29T19:55:00Z
Duration: 3 min 21 s
Description: President Trump's executive order suspending the de minimis rule for all U.S. imports takes effect on Friday. WSJ's Esther Fung explains how this will hurt small businesses abroad and shoppers in the U.S.

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President Trump's executive order suspending the de minimis rule for all U.S. imports takes effect on Friday. WSJ's Esther Fung explains how this will hurt small businesses abroad and shoppers in the U.S. Photo Illustration: Ryan Trefes

https://m.wsj.net/video/20250829/32147fc6-2ac9-40dc-bcd9-70e58911b5f2/1/hls/manifest-hd-wifi.m3u8

President Trump's executive order suspending the de minimis rule for all U.S. imports takes effect on Friday. WSJ's Esther Fung explains how this will hurt small businesses abroad and shoppers in the U.S.

Trump Ends De Minimis Tariff Rule: How Online Shopping Will Change

Starting today, if you're looking to buy a watch from Germany, a pair of shoes from Italy, or a pair of yoga leggings from Vietnam, you might have to pay a bit more. This is because President Trump has suspended the duty-free de minimis rule for all countries. This means that people are going to have to start paying tariffs on all these e-commerce packages worth $800 or less, that they might have gotten previously duty-free. De minimis means trifling or of little value. The idea behind having a de minimis exemption in the first place is to allow packages with low-value items come into the United States with as little friction as possible, because it's just not worth the time or effort to collect tariffs on these items. Let's say you want to buy a pair of yoga leggings. It comes from Vietnam, and previously, it would cost around $98. After this tariff change, it could cost more than $150. We're not sure how much you, as the consumer, would pay because the company or the shipper might want to share that cost with you, or they might absorb all the cost. How much of it would impact your wallet is a question mark. So I talked to Sternglas, a German watch brand. The founder, Dustin Fontaine, he delivers around 30 watches to US customers every day, and he has had to halt shipments to US customers till October. For companies like Sternglas, some of the options they could consider are having their inventory housed in a US warehouse instead. They still have to pay tariffs on these watches, but they don't have to pay individual tariffs on individual packages delivered to US customers if they are fulfilled domestically. Trump's new rule is causing a lot of confusion for a lot of these foreign post offices. It is not their job to be collecting tariffs, and so, many of them have announced that they're suspending sending e-commerce packages to the United States. The larger companies, they have more resources like customs brokers, access to logistics, consultants, and they would be able to navigate this change quite easily. It's the smaller businesses that might have a harder time. Many businesses are trying to pay the tariffs before the packages arrive at your doorstep. They're either trying to find a way to continue to ship to US customers and to pay the tariffs, or they're saying that the tariffs are way too high, they do not wish to pass on the cost to their customers, and they would rather stop shipping to US customers. Some US businesses who are manufacturers are hopeful that this change would help them. They say that this would level the playing field because all the suppliers would now have to pay similar import costs, and they wouldn't be priced out by cheaper imports. They are expecting higher demand from US customers in the coming months. So for US consumers, expect to see prices go up, and perhaps fewer choices for the time being.