RETAIL PANIC: WHAT THE END OF THE ‘DE MINIMIS' EXEMPTION MEANS FOR BRANDS ACROSS THE GLOBE

Summary from the TLDR Marketing newsletter

The sudden end of the US de minimis exemption, which allowed shipments under $800 to enter duty-free, is disrupting global retail supply chains. It will raise costs for businesses and increase prices for consumers. Initially set to expire in 2027, the policy was abruptly terminated by executive order, impacting companies from small Etsy sellers to major brands like Tapestry and Lululemon that had built business models around it. Used by e-commerce giants like Shein and Temu, the exemption's removal is forcing businesses to restructure logistics, delay shipments, and, in some cases, halt US sales.