US Ends De Minimis Tariff Exemption on Low-Value Imports

President Donald Trump has ended the long-standing 'de minimis' tariff exemption, which allowed goods valued under $800 to enter the US duty-free. This change, implemented ahead of the original congressional deadline, affects millions of daily shipments and aims to curb the smuggling of dangerous drugs, including fentanyl, which Trump cited as justification. The exemption, initially set in 1938 for items worth $1 or less and raised to $800 in 2015, had facilitated a surge in low-value parcel imports, largely from China and platforms like Temu and Shein. Since the exemption was abolished for Chinese parcels in May, shipments from China fell dramatically, but Chinese shippers have sought to reroute goods through other countries, prompting the extension of the duty requirement globally. Under the new rules, parcels must undergo customs review and pay applicable US duties ranging from 10 to 50 percent, with an exception for genuine gifts under $100. The US government expects express carriers like FedEx and UPS to handle shipments without problems, while criticizing regular postal services for restricting shipments rather than improving content reporting to US authorities.