Abolishing the “De Minimis” Exemption and How It Will Affect Sellers

Abolishing the “De Minimis” Exemption and How It Will Affect Sellers

As conversations around U.S. trade and tariffs intensify in 2025, one policy shift has gained significant attention: the potential abolishment of the “de minimis” exemption. For online resellers, gig workers, and small business owners running a reselling business from home, this policy change could be a game-changer.

This post explains what the de minimis exemption is, why lawmakers want to eliminate it, and how its removal may affect everyday sellers using platforms like eBay, Depop, Poshmark, Mercari, and Shopify. Most importantly, we’ll cover practical steps to adapt, including using AI agents, auto-sharing on Poshmark, sending offers, and tariff-smart sourcing.

What Is the “De Minimis” Exemption?

  • Definition: The de minimis exemption allows imported goods valued under $800 to enter the U.S. duty-free, without formal customs paperwork.

  • Who Benefits: Small resellers, dropshippers, and gig sellers often use this rule to import low-cost items from overseas suppliers (e.g., China via AliExpress, Shein, or Temu) without paying tariffs or fees.

  • Why It Matters: It keeps costs low for resellers who flip products online, especially beginners who don’t want the complexity of customs clearance.

Why Lawmakers Want to Abolish It

  1. Trade Fairness: U.S. retailers argue that de minimis gives foreign sellers an unfair advantage by avoiding tariffs.

  2. Revenue Loss: Billions in potential tariff revenue are lost yearly.

  3. Counterfeit Concerns: Customs has limited oversight of small shipments, allowing knockoffs to slip in.

  4. Political Pressure: Rising tensions with China have made tariffs a bipartisan issue.

How Abolishing It Will Affect Sellers

1. Higher Costs for Resellers

If tariffs apply to all imports, sellers sourcing cheap items from overseas will see costs rise. For example:

  • A $15 gadget from China may incur a 15–25% duty.

  • Margins on small flips shrink unless sellers increase prices.

2. More Paperwork & Delays

Without de minimis, even a $10 order may need customs clearance. Expect longer delivery times, more lost packages, and higher handling fees.

3. Resale Market Shifts

  • Winners: U.S.-based suppliers, thrift resellers, vintage sellers.

  • Losers: Dropshippers relying on AliExpress or Temu imports.

4. Tariffs Will Reshape Pricing

Sellers will need to adjust pricing models and potentially pass costs to buyers. Smart automation tools will be essential to keep margins intact.

Strategies for Sellers to Adapt

1. Source Locally Where Possible

  • Thrift shops, estate sales, and garage flips remain unaffected.

  • Domestic wholesale suppliers can become more competitive compared to imports.

2. Use AI Agents for Smarter Reselling

AI tools (like Closo’s automation) can help you:

  • Predict which items sell fastest.

  • Adjust pricing dynamically if tariffs increase costs.

  • Recommend marketplaces (eBay vs. Depop vs. Poshmark) based on demand signals.

3. Maximize Poshmark & Depop Sales

With imports becoming pricier, resale platforms focusing on secondhand fashion gain strength.

  • Auto-sharing on Poshmark: Keep your items at the top of feeds automatically.

  • Sending offers: Encourage hesitant buyers with discounted bundles.

  • Depop SEO optimization: Use trending keywords in titles to increase visibility.

4. Rethink Your Niche

Instead of importing low-value gadgets, pivot to:

  • Vintage clothing

  • Branded shoes (sneakers, boots)

  • Collectibles & home goods

  • Liquidation pallets from U.S. retailers

5. Build Tariff Costs Into Pricing

  • Track HS codes (tariff categories) for your imports.

  • Add a buffer in your pricing strategy.

  • Use marketplace analytics to balance competitiveness with profitability.

Case Study: Maria the Gig Reseller

  • Before: Maria sourced $5 accessories from China, reselling them on Depop for $15.

  • After De Minimis Removal: Each $5 item now costs $6.50 with tariffs + fees, cutting her margins by nearly 50%.

  • Pivot Strategy: She shifted to sourcing thrifted Levi’s jeans locally for $8–$12, flipping them for $40 on Poshmark.

  • Result: Maria actually increased her monthly profit because she embraced higher-margin categories less affected by tariffs.

What Sellers Should Do Now

  • Stay Informed: Follow tariff legislation news.

  • Experiment Early: Try sourcing domestically and compare margins.

  • Automate Tasks: Use auto-sharing, offer sending, and AI-driven listing optimization to boost visibility while focusing on better sourcing.

  • Educate Buyers: If prices rise, be transparent about why. Many customers are aware of trade and tariff issues.

SEO-Focused Takeaways

If you’re searching for:

  • “how to start reselling” → Focus on local sourcing strategies.

  • “reselling business from home” → Automate tasks with AI agents to scale without hiring help.

  • “sharing on Poshmark” → Auto-sharing and offers are crucial for staying competitive.

  • “depop and tariffs” → Vintage and thrift niches become more attractive as tariffs bite.

Final Thoughts

The abolishment of the de minimis exemption could disrupt how small online sellers operate—but it also levels the playing field. Resellers who adapt early by sourcing smarter, leveraging AI automation, and leaning into secondhand and domestic supply chains will thrive.

Instead of fearing tariffs, see them as a chance to differentiate your reselling business and grow stronger margins in niches less exposed to global trade politics.

You may also like