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De Minimis Is Dead: What It Means for Dropshippers
De Minimis is dead—here's what dropshippers need to know: higher duties, slower customs, and how to adapt with bulk imports, US warehouses & smart pricing. Protect margins now with Ship to the Moon.
The End of the $800 Loophole
Until now, any package valued at $800 or less could glide through U.S. customs duty‑free with almost no paperwork. In 2024 alone, more than one billion parcels—much of it from Shein, Temu, and thousands of dropshippers—relied on that shortcut to keep prices rock‑bottom and shipping quick. Ship to the Moon has moved tens of thousands of these parcels every month, so we’ve watched the change unfold in real time.
Executive Order 14257—What It Says
On April 2, 2025, the White House ended de minimis treatment for everything shipped from China or Hong Kong. Starting May 2, 2025, even a $1 keychain must clear a formal customs entry, carry a ten‑digit HTS code, post a customs bond, and pay duty plus Section 301 tariffs that can reach 145 percent. Lawmakers have hinted that the same rules may soon extend to any low‑value product already hit by Section 301—even if you route it through Mexico or Canada. Why This Hits Dropshippers HardThe loophole kept landed cost near zero and clearance times measured in hours. Delete it, and every China‑origin parcel moves into the slow lane. Run the math: if duty turns a $12 landed cost into $18, can you still sell for $29 and advertise profitably?
Need help crunching the numbers? Talk to a Ship to the Moon agent today.
What Happens Next
Carriers and fulfillment centers have already slapped tariff surcharges onto their rates. Parcels that once cleared in a few hours can now spend days in customs. Fast‑fashion giants like Temu and Shein are stocking inventory inside U.S. warehouses and raising prices; smaller sellers will feel the same squeeze within weeks.
How Smart Sellers Are Adapting
•Sell products that can absorb duty. A landed cost around $15 should retail for at least $50 to leave room for tariffs and ads.
•Import in bulk and let Ship to the Moon bring your inventory into our US fulfillment hub so your customers can enjoy fast domestic delivery.
•Grow owned audiences (email, SMS, WhatsApp) so rising ad costs do not kill acquisition.
•Target new consumer markets such as Europe, the United Kingdom, Australia, or Canada. The EU still waives customs duty below €150 and supports IOSS for simplified VAT, and Ship to the Moon already runs DDP lanes and IOSS registration into major EU countries. Want real‑time tariff updates? Join our founders‑only WhatsApp group.
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First Three Months of Storage is on Us
Sign up to Ship to the Moon fulfillment before June 30 and get the first three months of storage free.
Bottom Line
The $800 free pass is gone for China, but dropshipping is far from dead. Success now demands real supply‑chain skills and partners who can tame duty, paperwork, and transit time. Ship to the Moon has the facilities and compliance team ready to keep your margins alive. Upgrade your logistics playbook today—your profit depends on it.
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