MercoPress. South Atlantic News Agency

No more “de minimis” exemption for shipments to US

Around 60% of imports using the exemption were from China and Hong Kong

The US Government of President Donald Trump has eliminated the so-called “de minimis” rule, effective Friday. According to this new decision, the previous rule allowing international shipments valued under US$800 to enter the country duty-free has been revoked, and all items are now subject to taxation.

The measure broadens an earlier action that had only applied to packages from China and Hong Kong. Now, all imported goods, regardless of their value, must pay tariffs ranging from 10% to 50%, depending on their country of origin. For the next six months, foreign postal services can instead apply a flat fee of US$80 to US$200 per package, but they must transition to value-based tariffs by February 2026.

In response, several national postal services, including those in Australia, Japan, Mexico, and many European countries, have temporarily suspended US-bound shipments, causing delays and logistical challenges for both businesses and consumers.

According to local and foreign analysts, the end of the exemption will likely lead to higher prices for consumers who rely on international e-commerce sites like Temu and Shein. Similarly, many small American businesses that import products, such as a boutique owner who sources apparel from France and Italy or a company that imports car covers from Mexico, will face higher costs.

The Republican administration argues that the exemption had become a loophole, exploited by foreign companies to avoid tariffs and used by criminals to smuggle contraband. The number of packages claiming the de minimis exemption had soared from US$134 million in 2015 to US$1.36 billion last year, with nearly 60% of those coming from China and Hong Kong.

While some small business owners who previously benefited from the rule are worried about their future, others believe the change will “level the playing field.” These business owners, who already paid tariffs on their bulk imports, feel they can now compete more fairly with large retailers and e-commerce giants that used the loophole to sell directly to consumers.