How Changes to U.S. Import Rules Are Impacting E-Commerce Businesses

For years, international sellers and drop shippers have leveraged China-based fulfillment for its cost efficiency and seamless global shipping. However, recent regulatory changes in U.S. import policies are reshaping the landscape, posing significant challenges for e-commerce businesses reliant on overseas production and shipping.

Key Changes in U.S. Import Regulations

In February 2025, the U.S. eliminated the de minimis duty-free exemption for shipments from China. Previously, shipments valued under $800 could enter the U.S. without incurring duties and taxes. Now, every package, regardless of value, is subject to tariffs, customs fees, and longer processing times. This shift represents a fundamental change in the cost structure and logistics for global e-commerce businesses.

Beyond the financial burden of tariffs, the removal of de minimis has introduced new compliance requirements, including:

• A mandatory 10-digit Harmonized System (HS) code for each item.
• Formal customs clearance for every shipment.
• The need for a customs broker to process imports, adding to costs and administrative complexity.

The Immediate Impact on E-Commerce Sellers

E-commerce businesses are already feeling the effects. For instance, a U.S. customer recently reported that an $84 order shipped from Australia to New Orleans was charged an additional $45.19 in duties and handling fees—a staggering 53% cost increase. Consumers are increasingly reconsidering purchases due to unpredictable total costs, directly impacting sales conversion rates for international sellers.

According to logistics experts, even with automated processes, import clearance fees can range from $5 to $7 per shipment when using carriers like DHL Express or UPS. The additional paperwork and customs processing create potential bottlenecks, delaying deliveries and increasing refund rates due to customer dissatisfaction.

Moreover, these changes affect not only shipments from China but also goods manufactured in China but shipped from other locations. For example, products originally produced in China and shipped from Germany to the U.S. are also subject to the new import rules.

Operational Challenges and Uncertainty

Compounding these issues, the United States Postal Service (USPS) recently announced a suspension of incoming parcels from China and Hong Kong, only to reverse the decision within 24 hours. Such unpredictability signals the growing risk of relying on overseas fulfillment without a contingency plan.

These changes in U.S. import policies could also inspire similar actions in Europe. The European Commission has already discussed tightening import regulations, particularly targeting fast fashion retailers such as Shein and Temu. If similar policies are implemented, e-commerce sellers may face additional hurdles in the European market.

How E-Commerce Businesses Can Adapt

To navigate these challenges, businesses must explore alternative strategies, including:

• Domestic Warehousing and Fulfillment: Establishing U.S.-based production and fulfillment centers can help avoid customs delays and unpredictable import fees.
• Diversified Supply Chains: Relying solely on China-based suppliers is now a riskier strategy. Exploring manufacturers in other countries or shifting to regional production hubs can provide stability.
• Transparency in Pricing: Businesses should proactively inform customers about potential duty and tax implications to manage expectations and avoid cart abandonment.
• Optimized Logistics and Customs Compliance: Investing in in-house customs brokerage capabilities or working with experienced fulfillment partners can streamline the import process.

The Future of Global E-Commerce

The removal of de minimis for Chinese imports is a turning point for e-commerce, demanding strategic adjustments from sellers worldwide. Businesses that proactively adapt by shifting to localized fulfillment and optimizing logistics operations will be better positioned for long-term success.

In the evolving landscape of global trade, flexibility and preparedness are key. Those who can adjust to these regulatory shifts will maintain profitability and customer satisfaction, while others risk falling behind in an increasingly complex and costly import environment.