US President Donald Trump has signed an Executive Order to expand its de minimis exemption globally, which could impact many Australian fashion brands that sell into the North American market.
The de minimis exemption was originally lobbed against Chinese goods, but a new order released overnight confirms this will expand to all countries from August 29, 2025.
This means that all shipments to the US market with a dutiable value below US$800, regardless of manufacturing origin, will be subject to duties on importation into the United States.
Australian-born, global luxury marketplace Cettire issued a statement this morning, advising shareholders that it is continuing to assess changes to the US tariffs regime.
Cettire confirmed that in May and June – being the months that reflect recent changes to US tariff arrangements already implemented – shipments by the marketplace to the United States represented approximately 40 per cent of Cettire’s gross revenues.
The marketplace added that shipments below the de minimis threshold represented the majority of sales to the United States during this period.
“Cettire is currently assessing the full implications of these tariff changes on the company and its global operations, noting that several major luxury brands have indicated they would seek to increase pricing of luxury goods in the US market to mitigate possible tariff changes,” the company shared.
“Cettire began identifying strategies to prepare for and mitigate potential changes to the US tariff regime throughout calendar 2024 and year-to-date 2025.”
Cettire noted it has a localisation strategy that has “underpinned a continued broadening of the geographic revenue base”, which Cettire expects to continue.
The latest move by Trump comes four months since he launched his ‘Liberation Day’ tariffs, which have been chopped and changed since, with many local industry leaders finding it hard to effectively navigate them.
A post by Ragtrader in April included commentary from Australian Fashion Council CEO Jaana Quaintance-James, who noted that Trump’s unpredictability is keeping businesses in protection mode and unable to strategise.
“In the current dynamic international trade landscape, our fashion businesses are navigating complex geopolitical crosscurrents that create significant compliance risks and costs, especially for businesses without dedicated trade compliance teams,” Quaintance-James said.
“With so much uncertainty, businesses cannot plan effectively when tariff policies might fundamentally change every few months, forcing them into reactive rather than strategic positions.”
Ragtrader has reached out to industry leaders for comment on the new de minimis rule.