On July 30th, the US government signed an executive order announcing the complete termination of the “de minimis” duty-free entry policy for packages valued at $800 or less worldwide, effective August 29, 2025. This policy change will have a direct impact on a wide range of imported and exported goods, including bicycles, electric-bikes, and related accessories and parts, particularly affecting exports from China and other countries around the world to the US.

The “de minimis” system, a special policy of U.S. Customs, has long exempted small packages valued at less than $800 from customs duties and regulatory oversight when shipped directly to U.S. consumers. This system, fueled by the rapid growth of cross-border e-commerce, has become a crucial channel for a large number of low-priced goods to enter the U.S. market. However, it has also sparked persistent dissatisfaction within the domestic industry.

PeopleForBikes, the U.S. bicycle industry association, issued a statement following the policy announcement, declaring the executive order “substantial progress in correcting long-standing trade injustices.” The association emphasized that this adjustment will effectively curb the influx of non-compliant and unsafe products into the U.S. market through duty-free channels, protecting the fair competition rights of law-abiding businesses while also improving consumer safety. Industry analysts have previously exploited this “duty-free loophole” to allow a large number of Chinese-made products, such as bicycles and spare parts, to enter the U.S. market directly through cross-border e-commerce platforms, circumventing import tariffs and bypassing certain product safety reviews, creating significant competitive pressure on domestic manufacturers and retailers.

According to official data released by U.S. Customs and Border Protection (CBP), the United States processed over 1.36 billion small packages subject to the “de minimis” policy in fiscal year 2024, the vast majority of which originated from mainland China and Hong Kong. In fact, the United States had already suspended the application of the “de minimis” system to such packages from mainland China and Hong Kong in May of this year. This complete termination of the policy can be seen as an escalation of these earlier regulatory measures.

The early termination of the “de minimis” duty-free policy signals a return to a more assertive approach by the United States to trade regulation and domestic industry protection. For American bicycle manufacturers and retailers, this represents a belated return to fair competition. For Chinese manufacturers and global exporters who rely on small-volume direct mail, it foreshadows a new round of challenges and market restructuring.