From De Minimis to Domestic: How Global Trade Shifts Are Accelerating Warehouse Automation in North America

Robots do a great job of managing the process to augment and amplify warehouse labor

The abrupt removal of the U.S. de minimis exemption—which previously allowed goods valued under $800 to enter duty-free—has sent ripples through North American supply chains. With tariffs now applying to nearly all low-value international shipments, retailers and importers are shifting strategies fast. At the forefront of this transformation? Warehouse automation—a resilient, scalable solution to meet rising costs, regulatory complexity, and the need for faster fulfillment.

What Changed: The End of De Minimis

On August 29, 2025, the U.S. eliminated its 86-year-old de minimis policy, meaning all international packages—even those under $800—are now subject to duties ranging from 10–50%, or flat fees of $80–200 during a transition period AP NewsInvestopediaThe Washington Post.

The impact has been far-reaching:

• Major brands like Lululemon face hundreds of millions in new tariffs Investopedia.

• Smaller businesses, especially e-commerce sellers and cross-border exporters, are bracing for higher costs and operational delays The Washington PostForbesFlavorCloud.

• In Canada, where the U.S. is the dominant export market, the removal has ignited concerns about price increases and logistical complexity FlavorCloudMacmillanPwC.

Triggering Automation: What’s Driving the Shift?

1. Cost Pressures & Compliance Complexity

Tariffs not only inflate landed costs but also increase customs processing, paperwork, and complexity—especially for low-value, high-volume goods. Companies are urgently searching for ways to cut overhead while maintaining speed and accuracy Barron'sRetail Divecartoncloud.com.

2. Steel and Equipment Cost Increases

Automation hardware, such as conveyor systems and robotic equipment, depends heavily on steel. Ongoing steel tariffs are raising the expense of implementing automation infrastructure scdigest.com.

3. Adoption of 3PL and Domestic Fulfillment

A proven workaround: import goods in bulk, clear customs once, and fulfill orders domestically via a U.S.-based 3PL. This strategy avoids per-shipment duties and shortens delivery times Warenouscartoncloud.com.

Why Automation Makes Sense Now

• Scalability and Speed

Automation systems—like AS/RS, AMRs, conveyors, and robotic picking—help warehouses scale during peak seasons and adapt to rapidly changing order volumes .

• Lower Long-Term Costs & Higher ROI

Despite high upfront investments, automation reduces labor dependency, minimizes errors, and accelerates processing time—resulting in ROI within just 18–24 months in many cases .

• Improved Accuracy & Safety

Robots and automation systems bring consistency and precision—cutting picking errors significantly and improving workplace safety by reducing human-robot interaction zones .

• Warehouse Space Efficiency

Automation enables denser storage configurations and better use of vertical space—sometimes increasing storage capacity by 2x to 3x compared to conventional layouts .

North America Automates: Regional Trends & Examples

• Market Growth: The North American warehouse robotics market is booming—projected to grow from about $4.5 B in 2023 toward $34 B by 2031, driven by labor cost inflation and e-commerce demands .

• Case Spotlight – DB Schenker (U.S.): Implemented DexoryView, a real-time AI-powered AMR system that scans 40,000 pallet locations daily, giving near-instant inventory visibility and boosting operational efficiency .

• Global Context: Major logistics providers are integrating automated systems fast. The same pressures apply across Canada and the U.S.—driving a continental move toward smarter warehousing.

Strategy in Action: Three Paths Forward

1. Bulk Import + 3PL Fulfillment: Use domestic fulfillment centers to avoid duties on small packages and retain fast shipping capabilities.

2. Invest in Flexible Automation: Focus on modular, scalable solutions like AMRs, goods-to-person systems, or AS/RS for efficient, future-ready operations.

3. Leverage Data Across Operations: Integrate WMS/WCS systems and AI analytics to optimize layout, inventory flow, and labor allocation—and take control of rising costs.

Conclusion: Automate to Adapt

The U.S. de minimis suspension has delivered a sharp wake-up call to North American supply chains: adaptability and automation are no longer optional—they're essential. By shifting focus to domestic fulfillment and intelligent automation, companies can reduce tariffs, enhance performance, and strengthen resilience against policy unpredictability.