The ‘de minimis’ import tax exemption helped gas residence supply and the rise of e-commerce within the US.
Revealed On 29 Aug 2025
The US has suspended tariff exemptions for small supply packages valued at $800 or much less, ending a loophole that allowed multiple billion packages to enter the US final yr with out customs duties.
The loophole is because of finish on Friday within the US, adopted by a six-month transition interval to a brand new tariff regime.
Greater than 30 nations, together with Australia, Germany, Japan and Mexico, have suspended or partially suspended bundle shipments to the US prematurely of the associated fee change.
Postal unions all over the world say extra readability is required about how the tariff will probably be calculated earlier than they resume shipments to the US.
International logistics large DHL stated it might not ship customary enterprise parcels to the US till “unresolved” questions are answered concerning “how and by whom customs duties will probably be collected sooner or later”, and “how the info transmission to the US Customs and Border Safety will probably be carried out”.
A White Home truth sheet launched on July 30 said that tariff charges on small packages will probably be calculated in one in all two methods beginning August 29.
The primary possibility units a flat price of $80 to $200 per merchandise, relying on the nation of origin. The second possibility relies on the worth of the bundle and the “reciprocal” tariff price set by the White Home for particular person nations.
The flat price will solely be obtainable for the following six months, after which all small packages will probably be topic to a tariff of 10 to 40 p.c for many nations.
The White Home set its “reciprocal” tariff charges in July for many commerce companions, though negotiations are ongoing with key commerce companions Mexico and China.
The administration of President Donald Trump says that tariffs are essential to decrease the US commerce deficit, whereas ending the “de minimis exemption” – which lets individuals off on paying import tax on small objects – will assist gradual the motion of narcotics posted throughout borders.
The de minimis exemption has been in place because the Nineteen Thirties, but it surely performed a crucial position within the US economic system after it was raised from $200 to $800 in 2015. The exemption on import tax on objects valued lower than $800 helped pave the best way for worldwide e-commerce by letting retailers ship on to the shopper.
Over the previous decade, the variety of packages crossing the US border annually rose tenfold from 129 million to 1.36 billion, in response to US customs knowledge.
The exemption additionally beforehand allowed Chinese language e-commerce giants like Shein and Temu to keep away from paying tariffs set on Chinese language items throughout Trump’s first time period in workplace.
