U.S. Ends Tariff Exemptions on Package Shipments
The U.S. is ending tariff exemptions for package shipments valued under $800. A six-month transition allows postal shippers to opt for flat duties, depending on the origin. This move, broadening the earlier exemption cancellation for China and Hong Kong, aims to curb narcotics and increase tariff revenues.
- Country:
- United States
The United States will permanently end tariff exemptions for package shipments valued under $800 starting Friday. A six-month transition period has been announced, allowing postal service shippers the option to pay a flat duty ranging from $80 to $200 per package, dependent on the country of origin, as confirmed by Trump administration officials on Thursday.
The U.S. Customs and Border Protection agency will enforce normal duty rates on all global parcel imports, regardless of their value, beginning at 12:01 a.m. EDT (0401 GMT) on Friday. This development expands on the previous cancellation of the de minimis exemption, which applied to shipments from China and Hong Kong earlier this year.
White House trade adviser, Peter Navarro, remarked that President Trump's decision to close what he referred to as the 'deadly de minimis loophole' is expected to save American lives by restricting harmful imports such as narcotics. Additionally, it may yield up to $10 billion annually in tariff revenues for the U.S. Treasury.
(With inputs from agencies.)
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