U.S. Suspends De Minimis Exemption on Low-Value Shipments Amid Rising Trade Tensions
The U.S. has suspended the de minimis exemption allowing low-value commercial shipments to enter tariff-free. Under an executive order by President Trump, packages valued at $800 or less now face tariffs, with goods from China and Hong Kong initially taxed as high as 145%. Air cargo shipments have declined as a result.
The United States has taken a significant step by suspending the 'de minimis' exemption, which previously allowed low-value commercial shipments to bypass tariffs. This move, announced by the White House, follows an executive order signed by President Trump. Starting from August 29, packages valued at $800 or under, arriving outside the international postal network, will incur 'all applicable duties.'
President Trump has been proactive in targeting packages originating from China and Hong Kong. The recently signed tax and spending bill repealed the global basis for the de minimis exemption, effective July 1, 2027. This decision, accelerated by Trump, addresses national emergencies and aims to protect American industry and businesses amidst growing global tensions.
The de minimis shipments to the U.S. have shown a sharp increase, reaching over 1.36 billion yearly by 2024. However, the policy shift has already led to a 10.7% decline in air cargo shipments from Asia. This significant policy change is seen as a measure to curb the influx of duty-free, low-value imports that have impacted American markets.
(With inputs from agencies.)
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