End of Tariff Exemption: E-Commerce Costs Surge
The U.S. has ended the tariff exemption for packages valued under $800, affecting e-commerce, small businesses, and consumers. The change aims to restrict narcotics flow and increase tariff revenues. Retail analysts expect prices to rise and trade on platforms like eBay and Etsy to be affected.
The United States terminated its tariff exemption for packages valued under $800 as of Friday, impacting e-commerce operations, small businesses, and consumers. This policy shift aligns with efforts to control narcotics imports and boosts tariff revenues, officials noted.
The exemption initially broadened under the Trump administration to combat opioid trafficking, particularly from China. Ending it is projected to inject an additional $10 billion annually into U.S. treasury while helping the domestic textile industry combat unfair competition.
The change could raise prices on e-commerce platforms, impacting sites like eBay and Etsy. Companies must now navigate the complexities of full tariff applications on all packages, posing initial logistical hurdles as they adapt to the new customs demands.
(With inputs from agencies.)
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