The Post-De Minimis Playbook: Rethinking Cross-Border Commerce
Update: On July 30, 2025, the White House issued an executive order that will end the duty-free de minimis exemption for all imports into the U.S. effective August 29, 2025.
Effective May 2, 2025, the U.S. is eliminating the de minimis exemption for imports from China and Hong Kong, ending duty-free access for hundreds of millions of cross-border small, direct-to-consumer shipments annually. This closes a long-abused loophole and redraws the global e-commerce map.
Why this matters:
- Chinese DTC sellers lose duty-free advantage. Tariffs now apply, leveling the playing field.
- U.S. brands regain pricing parity. Stronger customs oversight also helps defend against counterfeits and IP theft.
- Cross-border small package shipping from China will be slower, more expensive, and logistically complex.
- Stricter customs enforcement means imported goods must now meet U.S. standards for labeling, safety, and ethical production—raising the bar across global supply chains.
Related Post: Navigating the New US Tariffs: How Small Businesses are Impacted and What They Need to Know
What U.S. Businesses Can Do Now
Below is your tactical game plan to capitalize on this policy shift and reclaim your competitive edge across pricing, fulfillment, and brand building.
1. Reclaim Margin and Market Share
Why: Tariff parity ends the race to the bottom. U.S. brands no longer need to slash prices just to compete with subsidized imports. Sellers can confidently price for value, reinvest in growth, and rebuild brand equity.
What to Do:
- Re-price strategically by analyzing your SKUs and raise prices where you previously matched overseas competitors. Be transparent with your customers when raising prices based on tariffs.
- Bundle products to increase average order value while improving perceived value.
- Run margin analysis monthly to identify opportunities to increase profitability without harming volume.
2. Scale Direct-To-Consumer (DTC) Profitability
Why: Reduced pricing pressure opens doors for expanding owned e-commerce, retail, and marketplace strategy—with healthier margins and stronger customer loyalty. Omnichannel becomes a true lever, not a cost center.
What to Do:
- Invest in your digital selling tech stack—product content management, channel integrations, inventory sync, and performance analytics—to create a scalable foundation for digital commerce.
- Expand with a multichannel digital sales strategy by combining your branded webstore with national retailers (e.g. Nordstrom, JCPenney, Macy’s), B2B marketplaces (Faire, NuOrder), and high-performing social commerce platforms (Instagram, TikTok, Facebook).
- Optimize the DTC funnel, run conversion audits to plug revenue leaks—improve page performance, boost average order value with upsells, and deploy smart abandoned cart recovery.
3. Reshore and Nearshore Manufacturing and Sourcing
Why: With duties now unavoidable for many imports, reshoring or nearshoring production becomes cost-competitive. U.S. brands can cut lead times, and reduce risk.
What to Do:
- Identify key SKUs to test with U.S., Mexican, or lower tariff country suppliers.
- Recalculate landed costs under the new tariff reality. You might be surprised how competitive nearshoring now is.
- Invest in traceability and storytelling around U.S.-made goods. Customers are willing to pay more for locally made, ethically sourced items.
4. Reinvest in Domestic Fulfillment and Logistics
Why: U.S.-based 3PLs, warehouses, and logistics providers gain relevance as brands shift from cross-border micro-shipments to regional U.S.-based inventory placement. Faster shipping, better customer service, and reliable returns become differentiators.
What to Do:
- Improve your logistics with efficient and low-cost DTC fulfillment.
- Partner with tech-enabled 3PLs that offer fulfillment, same-day shipping, and real-time inventory sync across sales channels.
- Improve return logistics and customer service with branded customer portals and faster refunds.
5. Invest in Brand, Product, and Innovation
Why: Freed from lowest-price pressures, brands can focus on design, quality, and specialization. This encourages premium positioning, brand storytelling, and creative risk-taking—especially in apparel, beauty, home goods, and lifestyle categories.
What to Do:
- Launch limited-run or seasonal drops to create urgency and test premium pricing.
- Revamp product design with better materials, packaging, and sustainability features.
- Develop category depth with accessories, upgrades, and high-margin add-ons.
- Market benefits and create a premium perception. Great marketing is the differentiator when price alone isn’t.
6. Strengthen IP and Brand Protection
Why: The crackdown on counterfeit goods benefits rights holders. With more scrutiny on packages and a move away from anonymous, untracked shipments, IP theft becomes riskier for bad actors—and enforcement more feasible for U.S. brands.
What to Do:
- Record your IP with U.S. Customs & Border Protection (CBP) to trigger enforcement against infringing imports.
- Use monitoring tools to scan marketplaces for counterfeits.
- Educate customers on how to spot fakes and why buying direct protects them.
What About Chinese Sellers?
The pressure is real. Chinese manufacturers and DTC brands must now:
- Adjust for tariff-inclusive pricing
- Shift fulfillment to U.S. warehouses or 3PLs
- Setup U.S. entities and launch operation to maintain proximity and consumer trust
- Rethink bulk vs. cross-border micro-shipment strategy
- Navigate increased customs scrutiny and regulatory compliance
- Cultivate U.S. B2B market working with major retailers and smaller retail stores
- Invest in U.S. operations software that complies
Many will struggle to adapt. That’s your opening.
The Bigger Picture: A Reset in Global Commerce
The end of the de minimis era signals more than a policy shift—it’s a mindset change. Trade is moving toward:
- Digital traceability
- Localized fulfillment
- Tax and regulatory enforcement
- Strategic partnerships across borders
Ready to Compete?
The death of de minimis is not the end of cross-border e-commerce—but it is the end of the free ride. U.S. businesses are now equipped to win with technology, compliance, and customer experience.
Want to explore how your business can benefit from the 2025 policy reset?
Talk to a DigitBridge strategist about fulfillment, DTC growth, and cross-border advantage.