US Tariff Exemption for Low-Value Packages Ends Permanently

The United States has permanently ended a long-standing tariff exemption for low-value packages. The policy change took effect early Friday morning. It applies to all international parcel shipments entering the country.

This move significantly broadens a previous measure targeting China. Officials state it aims to boost security and generate billions in new revenue. The change will impact millions of consumers and businesses.

New Flat Fee Structure and Permanent Policy Shift

The de minimis exemption allowed packages worth under $800 to enter duty-free. That exemption is now completely eliminated. All parcels will be subject to standard tariff rates.

According to officials, foreign postal services have a transition option. They can choose to collect a new flat duty fee. This fee ranges from $80 to $200 per package.

The amount depends on the country of origin’s existing tariff rates. This structure is based on reciprocal trade terms. The transition period lasts for six months.

Broad Impact on E-Commerce and Security Cited

The administration links this policy to national security concerns. Officials blame the exemption for allowing illicit drugs like fentanyl to enter. They also cite a massive increase in package volume.

Data from U.S. Customs and Border Protection confirms a huge spike. Package claims jumped from 139 million in 2015 to 1.36 billion in 2024. The end of the loophole is deemed permanent.

This change disrupts the business model of major e-commerce firms. Companies like Shein and Temu relied heavily on the exemption. Consumers will now face higher costs on goods from abroad.

The end of the US de minimis exemption marks a fundamental shift in trade policy. It permanently alters the landscape of global e-commerce and cross-border shipping.

Info at your fingertips

What is the de minimis exemption?

It was a tariff rule. It allowed imported packages valued under $800 to enter the U.S. without paying any duties. This exemption has now ended.

How will this affect my international orders?

You will likely pay higher costs. Additional duties or flat fees will be added to your purchases. This applies to all packages, regardless of their value.

Are any shipping carriers affected differently?

Yes. Express carriers like FedEx and UPS must collect full tariffs. Foreign postal services can use a flat fee system during a six-month transition period.

Why did the government make this change?

Officials cite security and revenue. They believe it will help stop dangerous goods like fentanyl. It is also expected to generate up to $10 billion annually.

Will mail delivery from other countries stop?

Some foreign postal services have paused shipments. The administration is working to minimize disruptions. Countries like Britain and Canada have confirmed deliveries are continuing.

Is this change definitely permanent?

Senior administration officials have stated the policy is a permanent change. They said any effort to restore exemptions is “dead on arrival.”

Trusted Sources

Reuters