Tariff exemption for small packages ends this week
The United States is ending a rule that allowed low-value imports to avoid tariffs, as part of efforts to rely less on foreign goods. Starting this week, packages worth $800 or less will face import taxes, impacting small businesses and online shoppers. This change is affecting international shipping, with several countries pausing shipments to the U.S.
Key Facts:
- The U.S. will no longer allow low-value imports (under $800) to enter the country duty-free.
- This change is part of a move to decrease dependency on foreign goods and adjust global trade.
- Previously exempt small packages will now have to pay tariffs based on their origin country’s rate.
- For the next six months, there is an option for a flat duty rate of $80 to $200 on these packages.
- Many national postal services in various countries, including Japan and the U.K., are temporarily halting shipments to the U.S.
- The "de minimis" exemption started in 1938 to avoid tariffs on imports valued at $1 or less.
- Over the years, the limit increased to $800, and last year, 1.36 billion such packages entered the U.S.
- The exemption is seen by some as a loophole exploited by foreign businesses and for illegal goods.
