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U.S. Ends De Minimis Tariff Exemption, Triggering Global Shipping Pauses and Higher Costs

Customs now charges duties on every sub-$800 parcel, with foreign posts struggling to meet new fee collection and data rules.

Overview

  • Customs and Border Protection began collecting standard duties Friday on all sub-$800 imports and introduced a six-month $80–$200 flat-fee option for packages sent via foreign postal operators.
  • Roughly 25 to 30 national postal services, including those in Australia, France, Germany, India, Japan, Sweden and Mexico, suspended or limited U.S.-bound parcels due to unclear collection and data-transmission procedures.
  • Officials cite fentanyl trafficking, counterfeit goods and tariff evasion as the rationale, and advisers project up to about $10 billion a year in additional customs revenue.
  • The initial rollout avoided major backlogs seen in earlier attempts, but businesses warn of higher prices, slower deliveries and some sellers pausing U.S. orders; letters and gifts under $100 remain duty-free.
  • E-commerce players such as Shein, Temu and AliExpress have raised prices or adjusted strategies, while larger retailers with U.S. fulfillment—like Urban Outfitters—expect competitive gains after 1.36 billion de minimis shipments in FY2024, most from China.