Trump ends duty-free treatment for all small packages shipped to the U.S.

Trump signed the de minimis suspension extension on Feb. 20, 2026, and the Federal Register published it on Feb. 25. The order ensures packages valued under $800 arriving via the international postal network are subject to the 10% Section 122 import surcharge that took effect Feb. 24, 2026.

The de minimis rule, codified in 19 U.S.C. § 1321, had allowed low-value shipments to enter the U.S. without customs processing or duties. Congress raised the threshold to $800 in 2016 as e-commerce grew. Chinese platforms like Temu and Shein built entire business models around it, shipping individual packages to U.S. consumers without tariffs.

Trump first suspended the de minimis exemption in July 2025 using IEEPA authority. After the Supreme Court struck down all IEEPA-based tariffs on Feb. 20, 2026, the administration immediately issued a new order under Section 122 to preserve the de minimis suspension without relying on the invalidated IEEPA authority.

Section 122 of the Trade Act of 1974 allows the president to impose a temporary import surcharge for up to 150 days to address a balance-of-payments deficit. The surcharge expires July 24, 2026 unless Congress extends it, giving Congress more leverage over trade policy than it had under IEEPA.

Carriers delivering international postal shipments must now collect and remit duties to U.S. Customs and Border Protection. The shift significantly increases customs processing burdens for postal carriers and may slow delivery times for packages from overseas retailers.

The policy particularly affects American consumers who buy from Chinese e-commerce platforms. Temu and Shein became U.S. household names by exploiting de minimis to offer prices domestic retailers couldn't match. U.S. domestic retailers, who have lobbied for years to close the loophole, stand to benefit from the change.

The conservative-leaning Tax Foundation estimated Trump's various tariffs added $1,000 in tax expenses for the average U.S. household in 2025. Unlike the IEEPA tariffs, the Section 122 surcharge has a hard 150-day expiration unless Congress acts, creating a built-in deadline that gives the legislative branch more leverage over trade policy.