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Does your business ship products from Canada to the U.S.? From 2016 until August 29th, 2025, many companies benefited from the de minimis tariff exemption, which had allowed shipments under US $800 to enter the U.S. without duties, taxes, or customs clearance. This rule had made cross-border trade more affordable and helped Canadian businesses of all sizes sell to American customers.
Big changes are here. As of August 29, 2025, the U.S. has removed the de minimis threshold for imports from every country. That means all shipments, regardless of value or origin, are now subject to U.S. import tariffs, duties, and taxes, with clearance required under either the Informal or Formal Entry process.
Here's what that means for your business – and how you can stay ahead.
The de minimis exemption is a U.S. trade rule that had, since 2016, allowed goods valued under US $800 to enter the country without paying duties or taxes, and under a simplified entry process.
The rule helped reduce shipping costs and speed up delivery times – a big boost for e-commerce businesses and SMEs wanting to reach U.S. customers.
From August 29, 2025, all shipments into the U.S. will be subject to duties and taxes, no matter the value or origin. For small and medium-sized businesses, that’s a significant shift.
With this change, accurate customs declarations become non-negotiable. You'll need to classify products correctly, declare their value, and make sure all documentation is correct, because mistakes could lead to delays, penalties, or unhappy customers.
Let’s say you’re a UK-based brand shipping fashion accessories to U.S. customers. Before, if the average order was under $800, you likely avoided duties altogether. Now, those same shipments will face duties, taxes and other import tariffs.
Or, if you're a Canadian skincare brand, your products might face different rates entirely. Tariffs vary by product type and country of origin, meaning businesses will need to factor in new costs based on where they’re shipping from and what they’re selling.
For e-commerce sellers and SMEs, the implications are clear:
That’s why smart planning is so important, and we’re here to help!
The removal of the de minimis exemption doesn’t have to derail everything, but you will need to make some smart adjustments. Here are some best practices to keep your shipping strategy running efficiently:
To ensure your shipments clear customs consistently, you should make sure that your documentation, including the Commercial Invoice, is complete and accurate. DHL’s MyGTS can guide you through all the data you need to provide to stay compliant and keep your shipment moving.
Double-check that your products are correctly classified under the Harmonized Tariff Schedule (HTS) codes. Using a customs duties calculator or DHL’s MyGTS can help you estimate costs more accurately, save time, and avoid expensive errors.
Factor in duties, taxes, and handling fees to get a true picture of your total shipping expenses. From there, you can update your product pricing or shipping options to maintain healthy margins.
Take ownership of duties and taxes upfront to make checkout and delivery smoother. When customers see the full cost in advance, they avoid surprise fees at the door, a major cause for cart abandonment.
Build trust in your brand by giving customers live updates on their shipment and the option to prepay charges.
Use services like Break Bulk Express (BBX) to consolidate multiple parcels into one clearance entry, reducing per-shipment costs. Or tap into the DHL Fulfillment Network (DFN) to store inventory within the US and avoid customs processing altogether for domestic orders.
DHL Express and DHL eCommerce services to the U.S. remain fully operational, so you can continue relying on the same fast, reliable delivery experience.
Behind the scenes, our teams have been actively preparing for the de minimis changes to ensure your shipments stay fully compliant with U.S. customs regulations.
If you're using MyGTS (My Global Trade Services), you'll also notice updates that reflect the new rules, including accurate landed cost estimates based on the latest import requirements, helping you plan and price with confidence.
While the removal of the de minimis exemption presents challenges, it also opens the door to new opportunities. This may be the perfect moment to rethink your global growth strategy. There’s a big world out there full of potential customers for your products; now is the time to find where that demand lies.
Some markets may offer quicker customs clearance and fewer import compliance hurdles, giving you the chance to scale rapidly. Others may be more competitive but promise greater long-term returns. Use DHL’s country shipping guides to make informed decisions about where to grow and how to get there efficiently.
It was a U.S. trade rule that allowed shipments under US $800 to enter duty and tax-free under a simplified customs clearance process. From 206 until August, 2025, it helped e-commerce businesses and SMEs reach U.S. customers more easily and affordably.
For most countries, the exemption ended on August 29, 2025. After that, all shipments, regardless of value, will be processed as informal or formal entries and subject to duties and taxes.
No. The exemption has been removed across the board, so SMEs should prepare now to avoid surprise costs or delays. With the right plan and support, your business can adapt quickly, and even turn this change into a competitive edge.
DHL is already helping thousands of businesses respond to the end of the de minimis exemption. Our experts can guide you through U.S. import tariffs, duty and tax prepayment, and accurate product classifications under the Harmonized Tariff Schedule (HTSUS) to keep you fully compliant.
In short, with DHL Express as your logistics partner, the end of the de minimis exemption doesn’t have to be a roadblock. It can open new doors for growth. Stay up to date with the latest U.S. import tariffs here and explore what’s possible for your SME with a DHL Express Business Account.
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