Hours ago, The White House announced a new executive order suspending duty-free de minimis exemption for low-value shipments.
For decades, many products under $800 could enter the U.S. duty and tax free which fueled the growth of borderless, low-cost sourcing, manufacturing, and fulfillment. That structure is now over. And the implications are massive.
While this change was planned to take effect July 1, 2027, this sudden acceleration will leave brands on their heels as they struggle to adapt.
Brands now have until August 29th to make the critical changes to ensure the health of their business and avoid disruptions to their customers.
E-commerce will not slow down or disappear because of these changes. Demand is still growing. Consumer adoption is still accelerating. What will disappear are the brands that fail to adapt to a constantly evolving environment shaped by trade, labor, climate, conflict, and any number of unforeseen changes on the horizon. Those that move decisively will fair the best. The rules have changed but it does not mean the game is over.
This sudden change to the global fulfillment landscape is shockingly similar to December's end of IMMEX in Mexico which saw brands scrambling to change their crossborder strategy coming to the United States from Mexico.
Stord helped reroute millions of units and onboard new customers rapidly, helping brands avoid the negative impacts to customers. True Classic was live and delivering orders out of our Hebron, KY facility within 19 days from signature.
If you are worried about how the end of de minimis will impact your business, DM me or reach out on
Stord.com.
Stord can help.