US permanently ends tariff exemption for packages valued $800 or less

US ends tariff exemption for delivery packages valued at $800 or less

The United States is set to end tariff exemptions on small package deliveries valued at $800 or less, closing a loophole that allowed over a billion shipments to enter the country duty-free last year.

The exemption will be officially lifted, followed by a six-month transition phase. During this period, postal service shippers can choose to pay a flat duty ranging from $80 to $200 per package, depending on the country of origin, according to Trump administration officials.

Initially, Trump ended the de minimis rule for China in May. Then he signed an executive order on July 30 to end the rule for all countries.

"President Trump's ending of the deadly de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous prohibited items, and add up to $10 billion a year in tariff revenues to our Treasury," White House trade adviser Peter Navarro told reporters.

“This is a permanent change,” said a senior administration official, noting that any attempt to reinstate exemptions for trusted trade partners was “dead on arrival.”

The de minimis exemption, established in 1938, was increased from $200 to $800 in 2015 to support small business growth through e-commerce platforms.

Over 30 countries, including Australia, Germany, Japan, and Mexico,  have halted or limited package deliveries to the US ahead of the upcoming tariff changes.

Postal unions globally are calling for clearer guidelines on how the new duties will be applied before resuming shipments.