With the de minimis exemption for certain international shipments set to end on August 29th, the electronics industry must prepare for significant adjustments in its supply chain. This long-standing trade provision has allowed shipments valued under $800 to enter the U.S. duty-free, with minimal customs processing. It has been crucial for quickly acquiring samples, prototypes, and small-batch component orders. The elimination of this exemption will now subject millions of additional small parcels to formal customs clearance, tariffs, and taxes.
Industry experts anticipate immediate bottlenecks at customs facilities, which will lead to extended lead times and disrupt project timelines that depend on just-in-time component delivery. Purchasing managers and logistics teams should brace for a substantial increase in administrative workload, as every order, regardless of its value, will now require formal entry documentation, tariff classification, and duty payment. This policy change, especially when combined with existing Section 301 tariffs, creates a challenging environment for maintaining production schedules and controlling procurement costs.