Summary
The United States has ended a tariff exemption rule that allowed goods worth $800 or less to enter the country without import duties. This change will affect many shipments, leading to possible higher prices and fewer product options for shoppers. The policy aims to prevent illegal smuggling and increase customs revenue.
Key Facts
- The U.S. removed a tariff exemption for imports valued at $800 or less.
- This exemption, known as the de minimis rule, allowed about 1.4 billion packages to enter the U.S. duty-free last year.
- The change is expected to lead to higher prices and fewer goods available for consumers.
- Small businesses may face significant challenges as a result.
- The rule was originally set to expire in 2027, but it was fast-tracked for repeal by an executive order from President Donald Trump.
- The U.S. government claims this change will help reduce drug smuggling and increase revenue by $10 billion annually.
- Packages without necessary documentation will face either country-specific duties or a fixed fee of $80 to $200 per package.
- Letters and personal gifts under $100 will remain duty-free.
