How the end of the $800 duty-free rule raised dropshipping costs
By MarginGuard · September 4, 2026
How the end of the $800 duty-free rule raised dropshipping costs
For years, one quiet rule made direct-from-China dropshipping cheap: parcels under $800 could enter the United States duty-free. That rule is gone. If you ship from China, your landed cost went up in 2025, and a lot of sellers still have not updated their pricing. Here is what changed and how to protect your margin.
What "de minimis" was
"De minimis" was a customs rule that let low-value shipments, under $800 per person per day, enter the US without duties or a formal customs entry (U.S. Customs and Border Protection). It is what made it cheap and easy to ship goods straight from a Chinese supplier to your customer's door, and it is a big part of why direct-from-China dropshipping, and giants like Shein and Temu, grew so fast.
What changed in 2025
Two dates matter:
May 2, 2025: the exemption ended for goods from China and Hong Kong.
August 29, 2025: de minimis was suspended for shipments from all countries.
Now shipments that used to slide through duty-free face duties and customs entry requirements (CBP; Avalara has a plain-English breakdown).
What it means for your costs
That $6 product that used to land at about $8 now carries import duty plus customs handling, and carriers often add a brokerage fee on top. The exact duty depends on what the product is and what it is worth, so there is no single number, but the important part is simple: it is no longer $0. Clearance can also take longer, which affects your delivery times and your customers' patience.
How to protect your margin
Recalculate your real landed cost per product: item + shipping + duty + any customs or brokerage fees. Not the old number.
Reprice or switch suppliers where the new cost eats your margin. Some products just do not work at the old price anymore. If you are weighing options, see which dropship supplier fits you.
Consider suppliers with US or local warehouses for your best sellers, so some orders skip the border entirely.
Watch your supplier prices so a change never catches you weeks late.
That last point is where we help. MarginGuard checks your supplier prices 24/7 and emails you the moment one moves, so you can react before it eats a month of profit. It is free for your first 3 products, no card required. Pair it with our guide on calculating your profit margin, or start tracking now.