Online marketplaces Ebay and Etsy express concerns over President Trump's unexpected decision to abolish the 'de minimis' duty-free rule, stating that this action may negatively impact sellers.
The U.S. government is set to suspend the de minimis duty-free exemption for all countries, effective from August 29, 2025. This significant change eliminates automatic duty-free treatment for low-value shipments (≤ $800), including those on marketplaces like eBay and Etsy.
The policy change aims to address concerns about fentanyl smuggling and cheap products entering the U.S. duty-free. However, it has raised concerns for small businesses and online retailers, as it may drive up costs, force them to raise prices, and lead to Americans paying more for everyday goods.
For platforms like eBay and Etsy, this change impacts secondhand, vintage, and handmade items sold internationally. Now, all commercial imports below $800 can be subject to import duties and taxes, whereas before these items might have entered duty-free if below the threshold.
Key effects for sellers and buyers on these platforms include increased costs and complexities, more complex customs processes and paperwork, risks of double taxation on returns, and the need for enhanced customs strategies. Sellers may need to develop clear customs documentation and possibly pay duties upfront or pass them to buyers to avoid surprise fees on delivery.
The removal or suspension of the de minimis duty-free allowance substantially raises the cost and complexity of shipping low-value secondhand, vintage, and handmade goods sold on platforms like eBay and Etsy to U.S. customers. There is no evidence that a similar removal occurred in August 2021; 2025 is the correct effective date for this major change in U.S. trade policy.
The change also disrupts ecommerce flows for online retailers like Shein and Temu, as it ended duty-free access for low-value parcels from China and Hong Kong at the start of May. Initially, this change was set for July 2027 but has been accelerated.
Etsy's global head of public policy and advocacy, Jeffrey Zubricki, stated that de minimis is a powerful tool for small creators, artisans, and makers. eBay urged the customs agency to reconsider the policy change, arguing that de minimis gives American consumers access to a global market for lower-priced items, including used goods and unique, collectible inventory not available domestically.
Andrew Wilson, deputy secretary general of the International Chamber of Commerce, questioned whether U.S. authorities can handle the tariff collections, potentially leading to delays and backlogs. eBay's CEO, Jamie Iannone, flagged the elimination of de minimis outside of China as a potential disruption that may impact eBay's revenue.
President Trump ordered the removal of duty-free treatment on parcels under $800 from all countries, starting August 29. Last year, 1.36 billion shipments entered the U.S. under de minimis, for a total value of $64.6 billion. As of Thursday, Etsy did not immediately respond to a request for comment on the policy change.
- The policy change initiated by President Trump in August 2025 eliminates duty-free treatment for low-value shipments, which could affect businesses like eBay and Etsy, particularly small businesses and online retailers.
- In light of the policy change, media outlets have started reporting on the potential impacts, with some focusing on the finance sector, as small businesses may need to bear increased costs and adjust their pricing strategies.
- The general news landscape has been buzzing with discussions about the implications of this policy change, with political analysts debating its effects on various industries, including the media, finance, and businesses.
