News
August 2, 2025

Us De Minimis Suspended 2025: A Guide for Shopify Merchants to Avoid Risky Workarounds + What to Do Instead

When Trump first suspended the $800 de minimis threshold, one of our Shopify merchants shared an Instagram Story with us and asked if the "creative" workaround mentioned would work. (See screenshot below.)

I did some research and recommended more legitimate approaches instead. While here in Australia we've been able to avoid the higher tariffs that many other countries face, I wanted to write this blog post anyway as we also serve Shopify merchants in other regions.

Important note: This blog post isn't a comprehensive guide to US customs regulations. Every merchant's situation is different, and you should do your own research before making any business decisions. Instead, I want to share why the "creative" solutions being shared on social media could cause problems for your business, and offer some legitimate, safer alternatives that actually work.

Instagram story screenshot showing a black ribbed ceramic cup with text overlay discussing customs fees workaround strategy involving separate membership fees and discounted product prices to lower declared values for imports

The US De Minimis Reality

The US used to have one of the world's highest de minimis thresholds at $800 USD, which makes it an attractive market for international merchants. For context, other major markets have much lower thresholds:

  • United States: $800 USD (Now suspended)
  • European Union: €22 EUR (≈$24 USD)
  • United Kingdom: £15 GBP (≈$19 USD)
  • Australia: $1,000 AUD (≈$650 USD)
  • Canada: $20 CAD (≈$15 USD)

That $800 threshold meant most international shipments to the US used to enter duty-free, making America one of the most accessible international markets for e-commerce brands.

So what happens now, after President Trump signed an executive order suspending the $800 de minimis threshold for ALL countries starting on August 29th, 2025?

This means every shipment to the US now faces tariffs regardless of value, and that's where some merchants start getting "creative" with their workarounds.

Australia's tariff status

Just a quick note for fellow Aussies reading this blog post - at the time of writing (August 2nd, 2025), Trump personally ensured Australia’s tariff rate would remain at a 10% baseline tariff on all US shipments regardless of value.

The risky workaround making the rounds

The Instagram Story which one of our Shopify merchants shared with us suggested e-commerce brands could structure transactions as "memberships" or "digital access fees", combined with heavily discounted physical products to stay under the US de minimis threshold.

This is their theory: Charge customers $200 for a "membership" or "digital subscription," then sell a $1,000 physical product for $300. Declare only the $300 product value to US customs, staying well under the $800 threshold.

Why this approach creates serious risks for US market entry:

US Customs compliance issues

  • US Customs and Border Protection (CBP) requires declaring the total transaction value
  • Connected transactions create obvious audit trails in their systems
  • CBP officers are specifically trained to identify value manipulation schemes
  • Penalties for misdeclaration can include fines, seizures, and import privileges suspension

Documentation creates legal risk

  • US e-commerce platforms maintain detailed transaction records
  • Payment processors like Stripe and PayPal create digital paper trails
  • Shipping companies report transaction values to CBP
  • The risk of audit and penalty isn't worth the potential duty savings

Business model complexity

  • You'd need genuine membership value beyond product access
  • Customer service complexity increases with international customers
  • US tax implications become murky with bundled digital/physical offerings
  • Accounting across different transaction types complicates international bookkeeping

Better strategies for the US Market

Instead of trying to game the $800 threshold, consider these legitimate approaches:

1. Strategic product positioning for US Customers

  • Bundle products to stay naturally under $800 where possible
  • Create US-specific product packages that work within the threshold
  • Offer modular purchasing (multiple smaller orders vs one large order)
  • Consider subscription models with individual shipments under $800

2. Transparent US shipping costs

  • Use Shopify's built-in duty and tax estimation for US orders
  • Be upfront about potential duties on orders over $800
  • Provide US customs duty calculators at checkout
  • Show total delivered cost including potential duties

3. US fulfillment strategy

  • Partner with US-based fulfillment centers to eliminate international shipping entirely
  • Use Shopify's fulfillment network or Amazon FBA for US market entry
  • Consider dropshipping from US suppliers for certain products
  • Evaluate 3PL providers with US customs expertise

4. DDP (Delivered Duty Paid) for premium experience

  • Handle all duties and taxes yourself for orders over $800
  • Build duty costs into your US pricing structure
  • Provide customers with truly "all-inclusive" pricing
  • Position as premium service compared to competitors who surprise customers with duties

5. Market-specific Pricing

  • Develop US-specific pricing that factors in potential duties
  • Create different product tiers optimized for the US market
  • Consider currency hedging strategies for USD pricing
  • Use dynamic pricing based on exchange rates and duty calculations

Why this especially matters for US pre-orders

If you're running international pre-order campaigns targeting US customers, customs compliance becomes critical because:

  • US customers are already taking a leap of faith buying from international brands
  • Surprise duties at delivery can damage the trust built during your pre-order campaign
  • Pre-order delays from customs issues compound delivery frustrations
  • Clear communication about total costs (including potential duties) should be part of your US pre-order strategy from day one

The most successful US pre-order campaigns we see from international merchants include total delivered cost estimates upfront, even for orders that might exceed $800.

Getting US Market entry right

For serious US market expansion, consult with:

  • US customs brokers who understand CBP requirements and e-commerce
  • International tax advisors familiar with US import duties and sales tax
  • Trade lawyers specializing in US import/export regulations
  • US fulfillment partners with proven customs compliance track records

Final thoughts

The risky schemes circulating on social media aren't worth the potential consequences. The US market's $800 de minimis threshold is already generous compared to other countries - there's no need to manipulate the system.

Instead of following questionable advice from social media posts:

  • Do your own research on US customs requirements through official CBP resources
  • Consult with professionals who specialize in US import compliance
  • Focus on legitimate strategies like the ones outlined above
  • Build sustainable business practices that work long-term, not quick fixes that create risk

Whether you're shipping from Australia, Europe, Asia, or anywhere else, sustainable success in the US market comes from understanding the rules and building your business accordingly - not from trying to circumvent them with creative accounting schemes.

Disclaimer: This post is a response to risky workarounds being discussed on social media and is not intended as comprehensive customs or legal advice. US customs regulations are complex and change frequently. This blog post should not be your only source of information - always do your own research using official CBP resources and consult with qualified customs professionals familiar with your specific situation before making any business decisions.

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