Some earth-shaking news for DTC brand portfolios: The global “de minimis” exemption ends August 29.

Your portfolio’s import model just became a margin killer overnight.

Every low-cost international parcel now faces import duties. That $20 margin buffer? Gone.

Here’s what this means for your investments:

Shelf-stable lead times shift.
Fulfillment becomes complex.
Anyone relying on direct-to-consumer import models will see margins erode rapidly.
90% of seized counterfeit goods were shipped under de minimis rules.

The portfolio impact is immediate and measurable.

Four questions every board should ask CMOs this quarter:

1.) Are you still shipping directly to the U.S. from China, Hong Kong, or other de minimis countries?

2.) What’s the updated landed cost per unit? Has your calculator included the new $80-$200 duty ranges?

3.) Can your model survive shipping delays and customs friction in the U.S. postal network?

4.) Have you evaluated near-shore or U.S.-based warehousing to avoid parcel-level duties completely?

Bottom line for portfolio operators: Margin leakage at scale stays invisible until the next board deck shows the cash flow impact.

The portfolio companies that address this proactively will maintain competitive pricing. The ones that wait will watch margins compress in real-time.

Push this conversation to your leadership teams now. August 29 isn’t movable, and neither is the math.

Looking for clarity on this. Happy to answer your questions below or take a call to talk more.