Explainer

Why End of De Minimis Tariff Exemption Risks Higher Prices, Shipping Delays

The Temu appSource: Bloomberg

A Latin term that used to be little-known outside the world of customs brokers has become the stuff of headlines this year. That’s thanks to a decision by US President Donald Trump to end the tariff-free treatment of “de minimis” merchandise that had been in place for almost 90 years.

The phrase — which loosely translates as “too small to matter” — refers to small packages shipped directly to consumers from abroad, millions of which arrive in the US every day. Qualifying as de minimis came with a huge perk: no customs declarations and no duties.