De Minimis Tariff Change Will Have Maximum Impact On Small Businesses

Published: Friday, August 29, 2025 at 7:36 pm

De Minimis Tariff Change Hits Small Businesses Hard

A significant change in U.S. trade policy took effect today, ending the "de minimis" rule that previously exempted international packages valued under $800 from tariffs. While the policy change may have been aimed at curbing the influx of low-priced goods from companies like Shein and Temu, the impact is expected to be most acutely felt by small businesses.

The executive order, implemented by President Trump, now makes it more difficult and expensive for both consumers and small businesses to purchase goods directly from foreign suppliers. Unlike consumers who have alternative avenues for finding low-cost goods, and e-commerce giants that can absorb tariff impacts, small businesses that rely on international goods face fewer options.

Marketplaces like Etsy, eBay, Poshmark, and Faire, which serve millions of small business owners, are already feeling the effects. Etsy's stock has dropped significantly since mid-August, and eBay's stock has also declined.

According to Jacob Bennett, CEO of CruxAnalytics, the end of the de minimis exemption has forced small business owners to become "accidental trade policy experts." He notes that customs fees could potentially double their costs, creating uncertainty and concern about the future of their businesses. Bennett highlights that small businesses often operate on tight margins, making them particularly vulnerable to increased expenses.

This change comes at a time when small business owners are already under pressure. Research by CruxAnalytics revealed a spike in searches for emergency loans and advice on winding down businesses, indicating growing apprehension about the economic outlook.

The surge in de minimis shipments in recent years, driven by direct-to-consumer shipping, has been substantial. White House statistics show a dramatic increase in these shipments between 2015 and 2024.

In response to the tariff changes, some platforms are offering support. Faire has introduced tools to help retailers identify products that can be shipped without import duties. Etsy has updated its seller handbook with guidance on navigating the new tariffs, including recommended carriers and cost calculation tools.

BNN's Perspective: While the intent of the policy change may be to address trade imbalances, the immediate consequences for small businesses are concerning. The government should consider providing additional support and resources to help these businesses navigate the new tariff landscape and mitigate the potential for economic disruption.

Keywords: de minimis, tariffs, small business, Etsy, eBay, import duties, trade policy, CruxAnalytics, Shein, Temu, customs fees, international packages, executive order, Faire, retail, e-commerce, President Trump, business owners, economic impact

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