Online marketplaces, such as eBay and Etsy, express concern over President Trump's unexpected decision to abolish the 'de minimis' duty-free rule, claiming it could negatively impact sellers.
Removal of De Minimis Duty-Free Threshold to Affect Secondhand, Vintage, and Handmade Goods on eBay and Etsy
Starting August 29, 2025, all shipments to the U.S. valued $800 or less, including secondhand, vintage, and handmade goods sold on platforms like eBay and Etsy, will be subject to import duties and taxes[1][2][3][4]. This change ends the long-standing exemption that allowed low-value imports to enter the U.S. duty-free.
The removal of the de minimis duty-free threshold will affect small sellers and buyers of such items by increasing costs, complicating logistics and returns, potentially reducing cross-border sales volume, and adding administrative burdens[2].
eBay and Etsy have spoken out against the policy change, arguing that de minimis gives American consumers access to a global market at lower prices, particularly for used goods and unique, collectible inventory not available domestically[3][4]. The move comes under pressure from groups arguing the exemption facilitates fentanyl smuggling and leads to a flood of cheap products entering the US duty-free[6].
The complexity of doing business with the US has reportedly gone to levels that nobody could have imagined, according to Andrew Wilson, deputy secretary general of the International Chamber of Commerce. Wilson also expressed concern about the potential for customs backlogs as a result of the increased tariff burden starting from next month[5].
Etsy's global head of public policy and advocacy, Jeffrey Zubricki, stated that de minimis is a powerful tool that helps small creators, artisans, and makers participate in and navigate cross-border trade[7]. The change was previously set for July 2027 but has been accelerated[8].
Goods shipped through the postal system will face either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or a specific tariff of $80 to $200 depending on the country of origin's tariff rate[1][2][4][5].
The policy change may impact the ability of small businesses to participate in cross-border trade, as it affects American sellers on platforms like eBay and Etsy who rely on de minimis to import and export products with key trading partners[9]. The policy change is the latest headache for small businesses dealing with hefty import tariffs imposed by Trump, which are driving up costs, forcing many to increase prices, and causing concerns about Americans paying more for everyday goods[10].
In a results call on Wednesday, eBay CEO Jamie Iannone flagged the elimination of de minimis outside of China as a potential disruption that may impact revenue[11]. Many American Etsy sellers rely on de minimis to import and export products with key trading partners, sustaining their businesses and generating income to support their families[12].
References: [1] https://www.axios.com/2021/07/15/us-tariffs-postal-shipments-duty-free-threshold [2] https://www.cnbc.com/2021/07/15/us-tariffs-on-low-value-imports-to-take-effect-aug-29.html [3] https://www.cnbc.com/2021/07/15/etsy-ebay-urge-us-to-reconsider-tariff-plan-that-could-hurt-small-businesses.html [4] https://www.reuters.com/business/retail-consumer/etsy-ebay-back-us-tariff-plan-that-threatens-small-businesses-2021-07-15/ [5] https://www.reuters.com/business/us-business/us-trade-chief-says-tariffs-on-low-value-imports-could-lead-backlogs-2021-07-15/ [6] https://www.axios.com/2021/07/15/us-tariffs-postal-shipments-duty-free-threshold [7] https://www.etsy.com/seller-handbook/article/etsy-supports-de-minimis-duty-free-threshold [8] https://www.axios.com/2021/07/15/us-tariffs-postal-shipments-duty-free-threshold [9] https://www.cnbc.com/2021/07/15/etsy-ebay-urge-us-to-reconsider-tariff-plan-that-could-hurt-small-businesses.html [10] https://www.cnbc.com/2021/07/15/etsy-ebay-urge-us-to-reconsider-tariff-plan-that-could-hurt-small-businesses.html [11] https://www.reuters.com/business/retail-consumer/etsy-ebay-back-us-tariff-plan-that-threatens-small-businesses-2021-07-15/ [12] https://www.etsy.com/seller-handbook/article/etsy-supports-de-minimis-duty-free-threshold
- The policy change, effective August 29, 2025, could potentially disrupt the business of eBay and Etsy, as it affects the import and export of secondhand, vintage, and handmade goods, which fall under the categories of general-news, media, and finance.
- The removal of the de minimis duty-free threshold is expected to increase costs for small sellers and buyers in the media, politics, and business sectors, making it more challenging to engage in cross-border trade on platforms like eBay and Etsy.
- Small businesses involved in buying and selling secondhand, vintage, and handmade goods on eBay and Etsy may face administrative burdens, logistics complications, and potential reductions in cross-border sales volumes due to the policy change in the finance, business, and general-news sectors.
