End of U.S. De Minimis Rule Sends Shockwaves Through Global Logistics

Ishan Perera
Jun 1
2 min read

LOGISTICS UPDATE | JUNE 1, 2025

The repeal of the U.S. de minimis rule on May 2, 2025, is having an immediate and sweeping impact across the global logistics sector. The rule had previously allowed goods valued under $800 to enter the U.S. duty-free. With that threshold eliminated, importers now face full customs duties on all shipments regardless of value.

Brands Scramble to Adjust

Companies are urgently restructuring supply chains. One standout is logistics startup Portless, which reported a 35% surge in inbound demand in the two weeks following the policy change. The company raised $18 million in new venture capital funding to scale its operations and meet growing interest from brands looking to manage post-de minimis costs.

“This is the most dramatic shift in import economics in over a decade,” said Portless CEO John Robison. “Direct-to-consumer brands that relied on small, frequent shipments are being forced to rethink everything from factory locations to packaging size.”

Customs Strategy Shifts

To offset the rising duty costs, logistics firms are increasingly turning to Type 11 entries and other lesser-used customs codes. These options allow companies to consolidate low-value goods, defer duties, or optimize import procedures in line with current regulations.

Customs attorney Linda Keller noted,

“We’re seeing a rush of inquiries around advanced customs classifications and tariff engineering. Everyone is looking for legal pathways to reduce exposure without disrupting fulfillment timelines.”

Moving Beyond China

In a bid to adapt, many companies are also shifting production and warehousing capacity away from China. New investment is flowing into Vietnam and India, with the goal of lowering overall landed costs and mitigating potential friction with U.S. customs.

According to TradeMoves Inc.,

“There’s been a 12% uptick in cross-border logistics contracts tied to Southeast Asia since the de minimis repeal. It’s a wake-up call for companies relying too heavily on one market.”

Policy Backdrop

The end of the rule stems from growing bipartisan criticism in Washington over duty avoidance and unfair competition from overseas sellers. In a statement, U.S. Trade Representative Katherine Tai said,

“This policy ensures a level playing field for American businesses, especially small manufacturers who have been undercut for too long.”

However, trade groups such as the National Retail Federation warn that this move could increase prices for consumers and slow down small e-commerce businesses dependent on international supply chains.

In Summary

The de minimis repeal eliminates duty-free importation under $800
Portless and similar firms are capitalizing on the shift with scalable logistics models
Businesses are reworking customs strategy and shifting supply chains to new regions
The long-term impact may include higher costs and broader trade diversification

The next quarter will test how well logistics providers and global brands can respond to one of the most significant U.S. trade policy changes in years.