End of U.S. Tariff Exemption Shakes Global Shipping

The longstanding tariff exemption for U.S. package shipments valued below $800 will end this Friday, signaling major shifts in parcel trade dynamics worldwide. During a six-month transition, postal service shippers can opt for a flat duty between $80 to $200 per package, depending on the origin country, according to officials from the Trump administration.

The change expands upon the earlier cancellation of de minimis exemptions for shipments from China and Hong Kong. White House trade adviser Peter Navarro claimed this move will help safeguard American lives by restricting illegal drug inflows and will boost tariff revenues by up to $10 billion annually.

Further, the volume of packages using the de minimis loophole surged from 139 million in 2015 to 1.36 billion in 2024, prompting the administration to impose full tariff rates. Prominent courier services and foreign postal agencies are adjusting to the new system by collecting duties and processing necessary paperwork under CBP guidelines.

(With inputs from agencies.)