Small Businesses Brace for Big Impact as De Minimis Shipping Ends

On Friday, Trump’s elimination of the de minimis shipping exemption – a rule that let small packages come into the U.S. without extra fees—went into effect. This affects millions of shipments every day, and small businesses are expected to feel the hardest hit.

For the last decade, many small businesses and online sellers could import low-cost goods—like clothing, accessories, or small electronics—without paying extra taxes. That meant they could keep prices low and still make a profit. Now, all packages under $800 coming into the U.S. will face duties, which could add up to billions of dollars in new costs for small companies.  

Why This Matters for Small Businesses

Big companies often have the money and staff to handle extra fees, paperwork, and shipping changes. Small businesses usually don’t. They may have to raise prices, delay shipments, or even stop selling certain products because they can’t absorb the extra costs.

Shipping companies now have to collect these fees and decide how to charge them—either as a percentage of the package’s value or a flat fee, which can be as high as $200 per package. After six months, the flat fee option goes away, and all packages will be subject to the percentage tariff rate only. For small businesses, this adds complexity, paperwork, and uncertainty.

Shipping Delays Are Coming

Several international postal services, including those in Europe, Japan, and Australia, are pausing shipments to the U.S. to figure out how to handle the new rules. This could lead to delays for small businesses waiting for goods from overseas.

Experts warn that many small businesses might not even realize how big this change is until it affects their operations. Some may struggle to comply with the new rules simply because they don’t have the resources to manage customs and shipping paperwork. 

The Bottom Line

Small businesses are likely to see higher costs, slower deliveries, and more complicated shipping. Consumers might notice this too—either through higher prices or less variety online. What used to be a simple way to get affordable products from around the world has suddenly become much more complicated.

For small business owners, the new rules are a real challenge, and adapting quickly will be crucial to staying competitive.