Earlier this month, the Trump administration took steps to eliminate a tariff exemption known as the “de minimis” rule, which previously allowed businesses to avoid tariffs on purchases under $800. This change has raised concerns among experts, who indicate that it could significantly impact small businesses that rely on international goods. Jacob Bennett, CEO of Crux Analytics, emphasized that small business owners are now faced with navigating complex trade policies due to this adjustment.
While the change may affect some small businesses, it’s important to note that the majority of small enterprises in the United States—approximately 70%—are service providers, such as accountants and freelancers, who do not engage in international buying. Consequently, many of these businesses may not experience a direct impact from the termination of the exemption.
Experts suggest that while some small businesses will feel the effects of increased prices resulting from the end of the de minimis exemption, consumer behavior may remain stable as long as incomes continue to rise. Reports indicate that inflation is currently around 2.7% annually, and the middle class’s net worth remains at historical highs. Additionally, the stock and bond markets continue to show resilience.
In response to the uncertainty created by the change in tariff policy, some business owners are adapting by diversifying their supply chains, seeking alternative suppliers, and using financing strategies to help customers manage potential price increases. Others are considering bulk purchases and utilizing bonded warehouses to temporarily avoid tariffs.
While the elimination of the de minimis exemption is expected to create challenges for certain businesses, the broader economic context suggests that the impact may be manageable for many. As the situation unfolds, monitoring both economic growth and consumer spending habits will be essential.
Source: https://www.theguardian.com/business/2025/sep/07/trump-tariffs-de-minimis-exemption