America Cancels Duty Exemption on Small Packages
The U.S. government announced that starting Friday, August 29, it will revoke the tariff exemption known as the “de minimis” system, which allowed packages valued under $800 to enter without duties. This decision means that any package exceeding $100 in value will be subject to the same tariffs applied to regular imports: at least 10%, 15% for the European Union, and up to 50% for countries such as India and Brazil.
U.S. authorities believe this step is essential for security reasons, revealing that most illicit materials seized in 2024 (98% of drugs, 97% of counterfeit goods, and 70% of hazardous products) were entering through this system, emphasizing that the cancellation “will save thousands of lives.”
However, this sudden change has caused global confusion, with postal services in 25 countries, including France, Germany, Italy, India, Japan, Australia, and Mexico, announcing a temporary suspension of small package shipments to the United States pending clarification of the new regulations.
During a transitional phase, fixed fees ranging from $80 to $200 may be imposed in the first six months to give businesses time to adapt.
Expected Consequences
- For exporters: Artisans, small businesses, and online sellers may face increased costs and shipping delays, potentially undermining their competitiveness.
- For U.S. consumers: Prices of products purchased through platforms like Shein, Temu, and AliExpress are expected to rise or become less available.
With this decision, Washington ends a decades-long policy and enters a new phase that blends national security concerns, increased tariff revenues, and a reshaping of e-commerce and global mail exchanges.
