While everyone was still immersed in the vitality of 2025, the cross-border e-commerce market in the United States was shaken by a sudden decision!

On February 1, 2025, US President Trump signed an important executive order to cancel the tariff exemption for small items "valued at less than $800."

The introduction of this policy means that many Amazon sellers and independent website sellers who win with low-price strategies will face the dilemma of "soaring costs", and some sellers even say that "the business may be ruined."

Why does the United States want to cancel the “$800 minimum” tariff exemption?

Let’s review some background first.

The United States has had a "de minimis" tariff exemption since the 1930s, and in 2016 the Obama administration increased the exemption from $200 to $800.

Affected by this policy, the number of goods imported into the United States soared, from US$40 million in 2012 to US$67 billion in 2020. Even in fiscal year 2024, the number of parcels entering the United States exceeded 1.36 billion.

The "easy door" of this policy has now been closed by Trump.

One of the main reasons for canceling the exemption is that a large number of small-value commodities from China enter the US market through this exemption policy, especially shoes and clothing, 3C digital products, household items, etc., the value of a single package is usually less than US$800.

The cost advantage brought by this "tax-free paradise" has greatly benefited many large cross-border e-commerce sellers and platforms.

But as Trump pursued the "America First" policy, this tax-free "loophole" was finally closed.

This policy directly affects a large number of sellers, especially those who sell low-priced goods and small package sellers.

In the past, these goods entered the US market at extremely low costs through duty-free policies, breaking down competitive barriers.

Now, once the tax-free policy is cancelled, their goods will face an average tariff rate of 10%-15%, which may even lead to a sharp increase in costs and the loss of their previous competitive advantage.

In particular, some independent site sellers and Amazon sellers who ship their own goods, who usually rely on "low price drive" to attract customers, now have to face higher tariff costs.

What is more worrying is that platforms such as Temu are no exception. Although Temu has long begun preparations for the "semi-custody" transformation in 2024, it is still unknown whether this transformation can be smoothly implemented due to the impact of tariff changes.

As price wars recede, cross-border e-commerce models will undergo major changes

At the same time, the logistics model of cross-border e-commerce will also undergo profound changes.

It is expected that in the next few years, more and more Chinese sellers will set up overseas warehouses (such as FBA) in the United States, but this also means that operating costs will increase significantly.

Compared with direct mail, the cost of overseas warehouses is 35%-50% higher, and the capital occupation period will be extended by 30-60 days.

This series of changes means that the threshold for cross-border e-commerce will be further raised, and only sellers with certain financial strength and brand advantages can stand out in the new environment.

In summary, 2025 will be a challenging year for the cross-border e-commerce industry.

The extensive model driven by low prices will gradually be replaced by refined and branded operations. Sellers must adapt to this transition period quickly and adjust their business strategies. Instead of relying on low-price strategies, they must improve their competitiveness by optimizing product quality, improving services, and building brands.

These changes are undoubtedly a "fatal blow" to many sellers who rely on low-price competition, but they are also an opportunity for a reshuffle in the industry.

In the future, the cross-border e-commerce industry will enter a more standardized and mature stage, and will also usher in more new opportunities and challenges.

The "storm" of this tariff policy is still continuing to ferment. Whether sellers can seize the opportunity and successfully transform depends on whether you can adjust your strategy!

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