It’s been two weeks since the Trump administration ended US duty-free imports of packages worth less than $800, the so-called “de minimus” exemption, and many small and independent retailers have been left scrambling to adjust their strategies amid an already fraught holiday shopping season. As Scott Benedict, the founder and CEO of omnichannel retail consulting firm Benedict Enterprises, told Inside Retail, “The end of de minimus will affect both retailers and consumers in meaningfu
gful ways.”
Benedict explained that for retailers, the immediate challenge will lie in adapting sourcing, pricing and supply chain strategies to mitigate cost increases and potential delays. Many will need to revisit cross-border fulfillment models, diversify suppliers and weigh whether to absorb new costs or pass them along to shoppers.
“Transparent communication and creative merchandising will be key to preserving consumer trust in what is already the most competitive time of the year,” said Benedict.
What makes the end of de minimus so tricky for retailers
Retailers like Primark have already begun to increase prices following the end of de minimus, which could make already shopping-resistant consumers even more wary to buy.
The end of de minimus is estimated to cost US consumers at least $10.9 billion, or $136 per family, according to a 2025 paper by Pablo Fajgelbaum and Amit Khandelwal for the National Bureau of Economic Research (NBER).
NBER’s research found that low-income and minority consumers would feel the biggest impact as they rely more on low-price, imported purchases from brands like Shein and Temu.
“For consumers, the changes may be felt most acutely this holiday season,” Benedict pointed out.
”Shoppers who have grown accustomed to fast, inexpensive direct-from-overseas purchases – particularly for gifts, fashion and trend-driven items – may now face higher prices, longer lead times and reduced availability. This shift could steer some demand back toward domestic retailers and marketplaces, but it may also heighten consumer frustration if the value equation feels less compelling.”
Small and independent brands, in particular, must rely on narrative-focused storytelling to drive product, versus pricing incentives.
How to navigate the upcoming holiday season post de minimus
Global Data MD Neil Saunders told Inside Retail that there are “no simple ways” for retailers to navigate this change.
“However,” Saunders stated, “bigger retailers like Temu have set up warehouses in the US to transport products domestically. They can use bulk imports to fill these warehouses with popular items. This still subjects them to tariffs, but it is cheaper and less complex than dealing with individual imports.”
Meanwhile, Keisha Nesbeth-Willis, an account executive at UPS, provided some practical solutions for small business owners to keep in mind while navigating a post-de minimus retail scene, including:
Differentiating through storytelling and brand identity
“You cannot always compete on price – but you can compete on meaning,” explained Nesbeth-Willis.
“Consumers, especially younger ones, are more likely to support brands that align with their values,” she elaborated.
She recommended that small business founders share their story; why they started the brand, who they serve and what impacts they make to the local community. This can be accomplished using social media and the company’s website to spotlight customer stories, behind-the-scenes processes and the founder’s personal “why.”
Optimizing digital presence and e-commerce capabilities
“While global imports have convenience on their side, small businesses can still win through accessibility and service,” said Nesbeth-Willis.
“Make your online store fast, mobile-friendly and transparent about shipping. Offer bundles, loyalty programs, or subscription models that keep customers coming back.”
Educating your customers
“Many consumers don’t realize how their shopping choices impact local economies. Without being preachy, remind them that every purchase supports jobs, families and the community. Transparency builds loyalty.”
Focusing on financial resilience and smart operations
This can be accomplished by tightening expense management and renegotiating with vendors and investing in technology that automates repetitive tasks.
It is also important to build a cash cushion to weather downturns. Survival isn’t just about selling more – it’s about operating smarter.
While concerns around the de minimus rule and global pressures are real, Newbury-Willis pointed out that so is the power of community-driven entrepreneurship.
“For small businesses, thriving will mean leaning into what cannot be imported or undercut: Authenticity, service, and connection,” she stated.
Additionally, Benedict noted that retailers who proactively help customers navigate these changes – by highlighting in-stock assortments, providing clear shipping timelines and reinforcing the reliability of their offers – will be best positioned to sustain loyalty.
“The holiday season is already marked by heightened expectations; those who manage both the operational and emotional side of this shift will have an advantage,” he said.
Benedict warned that out of all the policies stemming from the Trump administration’s current tariff and trade policy dynamics, this feels like the area of policy change that will not change in the foreseeable future.
“As such, the impact on both consumers and retailers feels more long-lasting, and less likely to change in the months ahead,” he concluded.