Summary
The US government has ended the tariff exemption for small delivery packages worth $800 or less. This means packages will now have tariffs, and many countries have paused shipments to the US until they understand the new rules. The change aims to reduce the trade deficit and control the flow of goods like narcotics.
Key Facts
- The tariff exemption for packages valued at $800 or less is ending on Friday in the US.
- More than one billion packages entered the US last year without paying tariffs due to this exemption.
- Over 30 countries have paused shipping packages to the US until the new tariff details are clear.
- DHL, a major delivery company, will not ship standard business parcels to the US because of unresolved questions about new tariffs.
- Starting August 29, tariffs will be calculated either by a flat rate or based on the package's value and its country of origin.
- After six months, all small packages will have tariffs ranging from 10% to 40%.
- The US aims to reduce the trade deficit and slow the movement of illegal substances across borders.
- This exemption previously aided the growth of international e-commerce, benefiting companies like Shein and Temu.
