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:

• The de minimis rule is officially being removed for these countries.

• All packages will now face tariffs, even those previously under the $800 threshold.

• For postal shipments, duties will be 30% of item value or $25 per item, whichever is higher — rising to $50 per item after June 1, 2025. (Please note, these are continuously changing so we are monitoring changes closely.

• Duties are calculated based on declared value of goods

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 huge 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.

What should you do right now?

✅ Maximize sales before May 2. The current de minimis rule is still in place — take advantage of it now. Push volume, clear stock, and ship as much as possible while it’s still duty-free.

✅ Get clear on your declared values. Duties will be based on retail value in China. Make sure your declarations are accurate, defensible, and consistent.

✅ Don’t assume bulk is better. As outlined above, bulk importing means immediate duty payments and upfront risk. Parcel shipping still offers flexibility and better cash flow control.

✅ Talk to us. We’re already updating operations and systems to support our clients through this shift. Whether you need help with customs strategy, forecasting impact, or adjusting shipping flow — we’re here to help.

The bottom line

The end of de minimis for China is real, and yes — it’s a big 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 preparing?

Just reach out — we’re ready.