US, Mexico to Curb De Minimis Imports to Prevent Illicit Trade

Low-value e-commerce shipments are under scrutiny as the United States and Mexico move to restrict de minimis imports, aiming to curb illicit trade and protect domestic industries. China, a major exporter of small parcels, is already feeling the impact.

The global e-commerce sector is undergoing a structural shift as countries reassess how they manage low-value imports. Central to this transformation is the de minimis rule, a trade provision that allows packages under a specific value to enter a country without duties or with reduced taxation. In the United States, that threshold has long stood at US$800, while Mexico sets its limits at US$50 (tax-free) and US$117 (duty-free) for USMCA partners.

Originally intended to ease customs congestion and lower costs for small-scale cross-border commerce, the de minimis rule has been increasingly exploited by large e-commerce platforms, particularly China-based firms like  Shein and Temu, which ship billions of parcels annually to North American consumers. Governments are now tightening regulations, citing concerns over national security, lost tax revenue, and unfair competition.

“When that flow is disrupted by new tariffs, stricter customs controls, or legal uncertainty, it undermines the promise of speed and convenience that defines the digital channel,” said Ilan Epelbaum, CEO, Mail Boxes Etc. Mexico, to MBN. “Returns become more costly, delivery times more volatile, and customer satisfaction harder to maintain.”

Timeline: A Year of Trade Realignments

United States

• September 2024: US Customs and Border Protection (CBP) begins limiting de minimis use for products subject to punitive tariffs (Sections 201, 232, and 301), requiring more data for shipments.

• February 2025: President Donald Trump, citing national security, issues an executive order suspending de minimis for imports from China, Hong Kong, Mexico, and Canada.

• April 2025: De minimis exemption is permanently suspended for China and Hong Kong, with a 120% duty or flat-rate postal fee on parcels.

• May 2025: A temporary trade agreement reduces that rate to 30% for commercial couriers and 54% or US$100 for postal shipments.

• August 2025: The US government moves to end de minimis globally, imposing flat-rate duties (US$80 to US$200) based on country of origin and shipment method.

Mexico

• December 2024: Mexico imposes tariffs of 15%–35% on imported textile inputs and apparel, particularly targeting Chinese goods. It also amends IMMEX (maquila program) to prevent misuse for e-commerce fulfillment.

• Early 2025: The Tax Administration Service (SAT) implements new taxes on low-value shipments, applying a 19% flat duty on courier imports from non-FTA countries. Shipments from the US and Canada under US$117 remain partially exempt.

• Ongoing: Mexican authorities continue to analyze further actions to prevent tax evasion by international e-commerce firms that split orders into multiple low-value shipments.

China’s e-commerce giants, particularly Shein and Temu, are facing major setbacks as access to US and Mexican markets becomes more restricted under the evolving de minimis frameworks. Temu has reportedly halted direct shipments to the United States, shifting to local warehousing strategies to minimize tariff exposure.

In 2024, the United States processed over 1.3 billion de minimis shipments, an average of nearly 4 million packages per day, the vast majority originating from China. Reports allege that e-commerce platforms have exploited the system to bypass customs duties, enabling ultra-cheap goods to flood markets tax-free.

Companies reliant on cross-border drop-shipping or direct-from-China models are being forced to overhaul their fulfillment strategies. Firms without local warehousing or formal customs infrastructure now face higher costs and slower delivery times. “Companies that once prioritized volume and reach are now focusing on tariff efficiency, traceability, and expert advisory to avoid surprises across the entire supply chain,” Epelbaum noted.

Temu’s pivot away from direct US imports is likely the first of many. As cost advantages erode, platforms like Shein may need to revise pricing strategies and growth forecasts.

Global courier services such as FedEx and UPS have already experienced volume declines, especially on Asia-origin shipments. Meanwhile, Mexico’s new IMMEX restrictions and US tariff changes are reshaping fulfillment models, particularly for third-party logistics providers operating nearshore distribution hubs.

“Mexican companies that adopt a strategic vision of international trade, seek expert guidance, and embrace cutting-edge logistics technologies will be the ones that continue to grow, not despite the tariffs, but through their ability to navigate them,” said Epelbaum.