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(Salem News Channel) US low-value package tariff exemption ends, raising costs for shippers, consumers
WASHINGTON (Reuters) -The U.S. tariff exemption for package shipments valued under $800 ended on Friday, raising costs and disrupting supply chain models for e-commerce companies, small businesses using online marketplaces and consumers alike.
The U.S. Customs and Border Protection (CBP) agency began collecting normal duty rates on all global parcel imports, regardless of value, country of origin, or mode of transportation at 12:01 a.m. EDT (0401 GMT) on Friday. It offered a flat-rate duty option of $80 to $200 per package shipped from foreign postal agencies for six months.
The move broadens the Trump administration’s cancellation of the de minimis exemption for packages from China and Hong Kong in May as part of an effort to halt shipments of fentanyl and its precursor chemicals into the U.S.
“President Trump’s ending of the deadly de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous prohibited items, and add up to $10 billion a year in tariff revenues to our Treasury,” White House trade adviser Peter Navarro told reporters on Thursday. “This is a permanent change,” a senior administration official said, adding that any push to restore the exemptions for trusted trading partner countries was “dead on arrival.”
The de minimis exemption has been in place since 1938, starting at $5 for gift imports and was raised from $200 to $800 in 2015 as a means to foster small business growth on e-commerce marketplaces.
But direct shipments from China exploded after President Donald Trump raised tariffs on Chinese goods during his first term, creating a new direct-to-consumer business model for e-commerce firms Shein and Temu.
The National Coalition of Textile Organizations called the move a “historic win” for U.S. manufacturing by closing a loophole that allowed foreign fast-fashion firms to avoid tariffs and import apparel sometimes made with forced labor, undercutting American jobs. “The administration’s executive action closes this channel and delivers long overdue relief to the U.S. textile industry and its workers,” the group said.
CBP has estimated that the number of packages claiming the de minimis exemption jumped nearly 10-fold from 139 million in fiscal 2015 to 1.36 billion in fiscal 2024 – a rate of nearly 4 million per day.
WASHINGTON (Reuters) -The U.S. tariff exemption for package shipments valued under $800 ended on Friday, raising costs and disrupting supply chain models for e-commerce companies, small businesses using online marketplaces and consumers alike.
The U.S. Customs and Border Protection (CBP) agency began collecting normal duty rates on all global parcel imports, regardless of value, country of origin, or mode of transportation at 12:01 a.m. EDT (0401 GMT) on Friday. It offered a flat-rate duty option of $80 to $200 per package shipped from foreign postal agencies for six months.
The move broadens the Trump administration’s cancellation of the de minimis exemption for packages from China and Hong Kong in May as part of an effort to halt shipments of fentanyl and its precursor chemicals into the U.S.
“President Trump’s ending of the deadly de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous prohibited items, and add up to $10 billion a year in tariff revenues to our Treasury,” White House trade adviser Peter Navarro told reporters on Thursday. “This is a permanent change,” a senior administration official said, adding that any push to restore the exemptions for trusted trading partner countries was “dead on arrival.”
The de minimis exemption has been in place since 1938, starting at $5 for gift imports and was raised from $200 to $800 in 2015 as a means to foster small business growth on e-commerce marketplaces.
But direct shipments from China exploded after President Donald Trump raised tariffs on Chinese goods during his first term, creating a new direct-to-consumer business model for e-commerce firms Shein and Temu.
The National Coalition of Textile Organizations called the move a “historic win” for U.S. manufacturing by closing a loophole that allowed foreign fast-fashion firms to avoid tariffs and import apparel sometimes made with forced labor, undercutting American jobs. “The administration’s executive action closes this channel and delivers long overdue relief to the U.S. textile industry and its workers,” the group said.
CBP has estimated that the number of packages claiming the de minimis exemption jumped nearly 10-fold from 139 million in fiscal 2015 to 1.36 billion in fiscal 2024 – a rate of nearly 4 million per day.