If you're shipping from China to the U.S., you've probably seen the headlines: the de minimis rule is being eliminated for shipments from China and Hong Kong starting May 2, 2025.

This rule, which allowed goods valued under $800 to enter the U.S. duty-free, has been essential for DTC brands, especially those relying on cross-border fulfillment.

But now, that exemption is ending.

Before you panic or rush to change your supply chain, let's break down what's actually happening and why, in most cases, sticking with China and a smart parcel-based strategy still makes sense.

What's actually changing?

Beginning May 2, 2025, all shipments from China and Hong Kong, regardless of value, will be subject to U.S. import duties.

Here's what we know:

Trump and China have agreed to a 90-day temporary reduction in tariffs, decreasing them from 145% to 30%.

You don't pay tariffs upfront when importing large batches into your local 3PL. Instead, Ecomflow ships directly from China to your customer using DDP (Delivered Duty Paid). That means duties and taxes are only paid at the moment of delivery, after the sale. This allows you to delay tariff costs, protect your cash flow, and reduce upfront risk. Additionally, Ecomflow's self-built tracking software conceals the China origin, displaying local tracking to your customers.

Why you shouldn't default to bulk importing

With tariffs looming, it might seem logical to shift to bulk importing. But here's what many brands miss:

When you bulk import into the U.S., you pay all tariffs upfront at the port before you've made a single sale. That means:

• Heavier cash flow pressure

• Larger financial risk

• Slower reaction times to changing demand

But with individual parcel shipments, duties are paid only as orders arrive in the U.S., one by one. This keeps your cash flow leaner and spreads out the cost over time, a significant advantage in today's environment.

So while both models will face the new tariffs, how and when you pay them matters a lot. Most brands will still benefit from cross-border parcel fulfillment, especially when working with a 3PL like us that specializes in optimizing it.

The bottom line

The end of de minimis for China is real, and yes, it’s a shift. But it’s not the end of the road.

Smart brands that act now, plan ahead, and understand their numbers will continue to grow, and we’ll be right beside you, making sure your logistics stay as smooth, cost-effective, and compliant as possible.

Need help on streamlining your supply-chain?

Just reach out, we’re ready.