Trade

US, tariffs on small packages in force from today

In the United States, the tariffs imposed by the Trump administration on small packages that, until now, enjoyed an exemption regime have officially come into force

(AdobeStock)

3' min read

3' min read

With the stroke of midnight on the Atlantic coast, the tariffs imposed by the Trump administration on small parcels that, until now, enjoyed an exemption regime, officially came into force in the United States. Even postal packages with a value of less than USD 800 will therefore be subject to taxation when they enter US territory. The only parcels to be exempted are those containing 'gifts' worth less than $100.

On 30 July, President Donald Trump announced the repeal of the duty-free regime for parcels from all countries, starting one month later. Tariffs make shipments to the US by foreign retailers more expensive unless sellers absorb the costs.

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The exemption ended in May for small shipments from mainland China and Hong Kong, and has now ended for goods from the rest of the world. According to US Customs and Border Protection, the number of small parcels covered by US duty-free exploded last year, reaching nearly 1.4 billion, a 600% increase over the previous decade. An estimated three-quarters or more came from China, with a significant share from SheIn Group Ltd and Temu.

The Trump administration's decision against the de minimis was made because, in its view, the exemption allowed traffickers to easily send packages containing fentanyl into the country. US retailers and industry groups also opposed the exemption, believing it gave an unfair advantage to foreign e-commerce companies such as Shein and Temu, as well as some third-party sellers on Amazon. Amazon, Shein and Temu declined to comment.

It is more difficult for small businesses to absorb tariffs and some are planning to increase prices to offset costs. Platforms such as eBay and Etsy, where individuals and small businesses sell everything from vintage football shirts to electronics, are advising sellers to notify their customers of tariff-related price increases.

Plans for a crackdown were under consideration during the Biden administration, then Trump followed up in May by removing the exclusion for China and Hong Kong. Before China and Hong Kong lost their de minimis exemption, an average of 4 million duty-free parcels arrived in the US per day, a senior administration official said. Since then, the average has dropped to about 1 million de minimis parcels per day.

Mexico has announced that its postal service will suspend parcel shipments to the United States. The announcement follows similar moves by postal services in the European Union and several other countries, twenty-five according to data released two days ago, which have suspended shipments pending more clarity on the US measure.

Still on the subject of tariffs, Brazilian President Luiz Inácio Lula da Silva authorised the launch of economic countermeasures against the United States in response to the 50% tariffs imposed on Brazilian products at the beginning of August. This was announced by the main Brazilian media. The action will be coordinated by the South American country's Foreign Ministry and Chamber of Commerce, which will have to produce a technical report within 30 days to assess the application of the Economic Reciprocity Law, approved by Parliament in April and signed by Lula in July. The measure stipulates that proportional measures can be taken on goods, services and intellectual property in the event of violations of Brazil's international competitiveness. The law allows Brazil to treat foreign citizens and governments according to the principle of reciprocity, including trade retaliation, investment, intellectual property rights and diplomatic issues. The initiative aims to defend Brazilian competitiveness and ensure that the South American country's economic interests are respected internationally.

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