Your cheap eBay buys just got $200 more expensive as US bans tax-free goods

AMERICANS could start paying more for eBay items as part of a new ban on tax-free goods.

The legislation begins this month for consumers and sellers, repealing an 87-year-old rule.

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Last month, President Donald Trump confirmed in an executive order that the “de minimis” exemption would be no more from all countries starting August 29, a deadline bumped up from July 2027.

The exemption has, for decades, allowed the Secretary of the Treasury to waive certain fees on imports where it would be more inconvenient to collect it than the revenue it would actually bring in for the US.

More simply, it made way for low-value goods to be shipped to America free of tariffs because the costs to impose the tax outweighed the potential gain from them.

De minimis was officially enacted in 1938 to reduce taxes on imported goods with a value of less than $1.

As inflation increased over the years, so did that threshold.

In 1978, for example, it was $8, then $200 by 1993, and nearly a decade ago in 2016 it hit $800 and has stayed there.

At least 1.36 billion shipments were eligible for the de minimis exemption in 2024, making for a value of around $64.6 billion, according to Customers and Border Protection (CBP) data.

Except, given President Trump’s order, there will be no exemption for imported parcels under $800, and goods shipped to the US will instead face two tariff possibilities, per Reuters.

The first is an “ad valorem duty,” which would mean a fee equal to the effective tariff rate on the country that sent the package.

Or, there could be a specific tariff for six months of $80 to $200, depending again on the tariff rate for the country of origin.

Those who frequently use platforms like eBay and Etsy to buy and sell products overseas have already taken notice and called out the policy change.

A Redditor snapped a screenshot of their UPS order earlier this month, which offered them a chance to “prepay” fees and taxes of $85.29.

“Additional charges may have been applied based on recent tariff policy changes,” it read.

“Is this real?” they questioned.

COMPANY COMMENTS

Executives for both Etsy and eBay have even spoken out against the removal of de minimis when asked for thoughts by CBP.

“These exemptions are a powerful tool that helps small creators, artisans, and makers participate in and navigate cross-border trade,” Jeffrey Zubricki, global head of public policy and advocacy at Etsy, said in a statement in March.

“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.”

It was also argued by eBay that de minimis has provided a “global market to find value at lower prices, particularly for used goods and a unique, collectible inventory that is not available domestically.”

Jamie Iannone, eBay’s CEO, also noted in a a recent earnings call that de minimis elimination for all countries could significantly impact the company’s revenue.

TEMU AND SHEIN

Duty-free access for packages under the $800 threshold ended for parcels from China speificially in May, which made the situation complicated for e-commerce platforms like Temu and Shein.

Each has operations out of China, and in recent years, more than half of imports with de minimis exemptions have been from the country.

At least 30% of daily packages with the exemption coming to the United States from China were also directly from Shein and Temu.

It ultimately led the companies to announce price increases for shoppers.

A small business owner was also recently left in tears, claiming their Etsy shop was “dying” amid tariffs.

Toy maker Mattel has also promised to save customers money on popular products like Hot Wheels and Barbie this Christmas amid tariff concerns.