3. Immediate Action Steps for Brands

With the rule change imminent or already in effect, time is critical. Here are what brands can do:

Audit SKUs at Risk of De Minimis Disruption:

Conduct a swift audit of your product catalog and fulfillment routes to identify which SKUs or orders have been relying on the de minimis exemption. Focus on any items shipped from overseas to U.S. customers. These will now incur duties and potential delays. Quantify the business impact: how many orders or what percentage of revenue came through this channel in the past 6-12 months? This audit should also flag high-tariff product categories. For instance, an apparel brand might identify dozens of clothing items shipped from an Asian warehouse. These products, which carry high import duties, are especially vulnerable to margin erosion. Mapping these SKUs and the related customer orders should be the priority when planning solutions.

Run Cost Simulations Under the New Duty Scenario

Using audit data, model the financial impact of the new rules on your unit economics. Consider orders that previously slipped in duty-free and calculate what duties would be due now. This involves identifying the correct Harmonized Tariff Schedule (HTS) codes for your products and applying the corresponding duty rate, including any country-specific tariffs that may apply.18 For example, consider a $50 electronic gadget imported from China. Under the old rules, you paid $0 in duties, and likely avoided broker or processing fees. Now, that same item could face a 10% general import duty, plus a 7.5% China-specific tariff. That’s $8.75 in duties. Add an estimated $3 broker fee for the formal customs entry, and your new landed cost jumps from $50 to $61.75, which is a 23.5% increase. These simulations will reveal which products lose viability or require price increases. You should also simulate in bulk. If you import 1,000 units at once, what costs do you incur in duties, freight, and warehousing versus individual shipments? The answer will give you a clear understanding of the most cost-effective fulfillment strategy to employ and the margin impact this will have on each major product line. Many import-reliant brands are coming to terms with thinner margins or passing costs to consumers. Your analysis will guide which path is feasible.

Communicate & Coordinate with Logistics Partners

Reach out to your 3PLs, freight forwarders, and parcel carriers immediately to discuss how they are handling the end of de minimis. Good partners should already have plans, but you must be informed and aligned. Start by asking the right operational questions: Can they handle formal customs entries? Do they have brokers in place and systems ready for the increased paperwork? If you’re using an overseas fulfillment center, can they reroute or consolidate shipments to the U.S. now that each package will no longer be duty-free? Some express carriers like UPS or DHL can broker shipments for a fee, but if you’re shipping at scale, consider a dedicated customs brokerage firm or a compliance platform that integrates with CBP’s Automated Commercial Environment (ACE).19 Clarify operational responsibilities across your network, especially around customs compliance and the Importer of Record designation. If your company takes on that role, ensure duties and filings are handled in advance to prevent surprises downstream. Avoid setups where duties are pushed to the customer, as this often creates friction and confusion. Communicate all these decisions clearly with carriers to ensure duties are billed correctly. Ultimately, get your logistics network aligned now. Warehouse managers to last-mile carriers should know there’s a new playbook starting August 29. Open communication will also surface any partner-specific issues. The sooner you know, the faster you can adapt or find alternative solutions.

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The analysis you conduct will likely reveal a significant increase in landed costs and a subsequent squeeze on margins. This is where a partner like Wayflyer becomes invaluable. Instead of immediately passing costs on to consumers or accepting thinner margins, Wayflyer provides a solution to the immediate and growing cash flow challenges presented by the end of de minimis. The shift to bulk importation, while potentially more cost-effective in the long run, requires a substantial upfront investment in inventory. For our example of the $50 gadget, importing 1,000 units at once means a new landed cost of roughly $61,750 (excluding bulk freight and warehousing costs). This is a significant capital outlay that many brands, especially those reliant on a direct-to-consumer model, may not have readily available.

Wayflyer offers flexible financing solutions that can bridge this gap. They provide the capital needed to pay for the larger, bulk orders and the associated duties, freight, and warehousing fees. This allows you to adopt the most cost-effective fulfillment strategy without having to deplete your working capital or take on high-interest loans. By securing financing for your bulk imports, you can maintain a healthy cash flow and ensure a consistent supply of your products.

Should your analysis show that a price increase is unavoidable, Wayflyer can also help you soften the blow. Their funding can be used to fuel your marketing efforts. By increasing your ad spend, you can drive a higher volume of sales to offset the impact of the price hike. This strategy helps you maintain profitability and brand loyalty by focusing on customer acquisition and retention, rather than simply absorbing the hit to your margins.

Meet with your planning teams to discuss how the end of de minimis may affect short-, mid-, and long-term planning models. Effective forecasting capabilities should adapt to changes within a realistic timeframe. If you are still relying on Excel-based or manual planning, consider AI-driven solutions that can deliver more accurate forecasts and autonomously adjust as conditions change. Start with clear questions:

  • 1. How many of our SKUs could be affected by this change?
  • 2. Could the end of de minimis increase forecasting errors in the short or long term?
  • 3. Should our planning time horizons change, given potential shipping delays?
  • 4. How many signals or data sources does our forecasting system incorporate?
  • 5. Do we have a process to monitor and integrate new market information into our forecasts?

Many companies are now exploring AI in demand forecasting. For example, Omnifold, a partner of Stord, develops AI systems that learn the specific requirements of each supply chain and adapt rapidly to changing market dynamics. Such systems go beyond simply placing a language model on top of a legacy planning tool—they integrate data, learn over time, and respond effectively to diverse market events.