De Minimis Is Ending: What It Means for Temu, Shein and Amazon Sellers

On May 2, the US ended the de minimis exemption for goods from China and Hong Kong. For years, packages valued under $800 could enter the US without duties and with very little paperwork. That rule helped low price platforms ship millions of small parcels straight from factories to American shoppers.

Now those parcels face duties. Here is what that means for Temu, Shein and other low price apps, and what it means for brands selling on Amazon.

What de minimis was

De minimis allowed shipments under $800 to enter the US duty free. Low price apps relied on it heavily, shipping individual orders directly from overseas. It let them avoid duties that brands paid when importing in bulk.

What changed

• From May 2, 2025, goods from China and Hong Kong no longer qualify for de minimis.
• Low value parcels from those places now face duties, on top of the new tariffs announced in April.
• In mid May, the US and China agreed to temporarily lower some tariff rates, but the end of de minimis for these goods stands.

Rules continue to evolve, so check the latest before making decisions.

What it means for low price apps

Platforms like Temu and Shein have been raising prices on many items, adding import charges and shifting toward stocking goods in US warehouses. Their huge price advantage on small items is shrinking.

What it means for Amazon sellers

Fairer competition on price

Brands that import in bulk and pay duties have been competing against parcels that paid none. That gap is narrowing. In some categories, your prices may look more competitive than they did a few months ago.

Your own costs are still up

The new tariffs from April still affect most importers. We covered how to respond in our post on tariffs and Amazon sellers.

Amazon Haul is affected too

Amazon’s own low price store, Amazon Haul, ships many items from overseas. Expect changes there as well.

How to use the moment

• Check your category. Look at whether low price competitors have raised prices or slowed delivery.
• Lean on fast delivery. Prime speed is a clear advantage when overseas parcels get slower or more expensive.
• Highlight value and quality. Shoppers comparing prices again will look for reasons to trust you.
• Watch click and conversion data in Search Query Performance for signs that shoppers are coming back from low price apps.

The bottom line

The end of de minimis for China removes a big cost advantage that low price apps relied on. Amazon brands still face higher import costs, but competition on price may become a little fairer. Use speed, trust and quality to win shoppers who are comparing again. If you want help adjusting your strategy, request a free audit.

FAQs

What is de minimis?

De minimis was a US rule that let shipments valued under $800 enter the country without duties and with simple paperwork.

When did de minimis end for China?

The US ended de minimis treatment for goods from China and Hong Kong on May 2, 2025.

Does the end of de minimis help Amazon sellers?

It can, by narrowing the price advantage of low price apps that shipped duty free parcels. Amazon sellers still face higher tariffs on their own imports.