US Warehouses Experience Rapid Growth Post-De Minimis Exemption Overhaul

A Transformative Shift in US Logistics

In 2025, US warehouses have recorded an impressive rebound, witnessing the fastest growth rates seen since the heights of the COVID-19 pandemic. This remarkable turnaround can be attributed to a critical change in trade policy that has reshaped the landscape of the domestic logistics sector. By eliminating the longstanding "de minimis" trade exemption, which previously facilitated the duty-free import of lower-value goods, consumer demand has shifted dramatically back to American fulfillment centers.

The firm ShipHero, a leading Warehouse Management System (WMS) provider, recently released data indicating that the logistics industry has achieved unprecedented growth, confirming that the domestic fulfillment sector is performing stronger than ever. According to ShipHero, which oversees approximately 1.3% of all US shipments, the volume of domestic fulfillment registered a year-over-year increase of 15.8%, marking the best performance since the end of the pandemic.

The De Minimis Trade Rule and Its Repercussions

The de minimis exemption, which allowed goods valued under $800 to enter the US without tariffs, previously created a competitive edge for foreign shippers. This exemption has now lapsed, prompting consumers to pivot towards US brands and products. ShipHero's Founder and CEO, Aaron Rubin, underscored the significance of this policy change, stating that it has redirected a substantial flow of orders back into US warehouses.

Rubin elaborated, "For years, US domestic brands fought an uphill battle against tax-advantaged foreign imports. With the loophole closed, we are seeing those orders flow back into US warehouses. It is a massive achievement for the domestic supply chain, and we are proud that our infrastructure is playing a meaningful part in powering this transition."

Insight Into Consumer Behavior

The data reflects a distinctive shift in consumer purchasing patterns following the cessation of the de minimis rule. As part of their analysis, ShipHero examined shipping volumes during the Black Friday and Cyber Monday periods of both 2024 and 2025, revealing a substantial year-over-year increase in shipping volume by 15.8%. This surge is indicative of a critical transition as consumers increasingly favor domestic inventory over foreign imports.

Accompanying this volume spike, the Gross Merchandise Value (GMV) also experienced a commendable rise of 16.2%, illustrating a successful financial win for American fulfillment centers amid changing market dynamics. The evidence supports the assertion that shoppers have not ceased their spending; instead, they have redirected their focus towards locally available products.

Advances in Warehouse Management Technology

The facilitation of this dramatic industry turnaround can be attributed in part to advancements in warehouse management technologies. ShipHero's state-of-the-art WMS employs artificial intelligence tools designed to optimize fulfilment operations for 3PLs and eCommerce brands. Features such as AI Picking, automated Rate Shopping, and LED-Light guided picking systems enhance warehouse efficiency while concurrently reducing labor costs.

This technology is playing a crucial role in enabling businesses to meet the rising demands of consumers seeking faster and more reliable fulfillment processes. In total, ShipHero supports more than 6,500 businesses across 40 countries, helping them respond effectively to this surge in domestic demand.

A Future Fueled by Domestic Strength

In conclusion, the removal of the de minimis exemption has opened the door to significant growth within the US logistics landscape. As American consumers pivot back to supporting domestic brands, the logistics sector stands ready to meet their needs. With innovative technology and efficient fulfillment strategies in place, firms like ShipHero are poised to lead the charge in this dynamic era of US logistics. The data suggests that the trends noted in 2024 and 2025 are not mere blips but may indicate a sustained preference for domestic fulfillment, as both businesses and consumers embrace a future anchored in local strength.

In this new landscape, a recalibration of trade policies and consumer priorities has paved the way for a prosperous domestic logistics sector. It will surely be interesting to watch how this evolution unfolds as the industry continues to adapt and respond to the needs of an increasingly localized market.