Terminates tariff exemptions for low-value packages, enforces duty collection on international shipments to the U.S.

The United States has implemented new tariffs on imported goods, effective from 12:01 a.m. Washington time on Friday, impacting various countries and international shipping companies.

The de minimis exemption, which allowed items worth $800 or less to be shipped to the US duty-free, has come to an end. This exemption, in place since 1938, was abolished by President Trump in July. As a result, full tariff rates now apply to all packages shipped by express carriers such as FedEx, United Parcel Service, and DHL.

Countries with tariffs between 16% and 25%, such as Indonesia and Vietnam, will be charged $160 during the six-month transition period. Those paying above 25% tariffs, including China, Brazil, and India, will pay $200 during this period. Parcels from countries with Trump-imposed duty rates below 16%, such as the United Kingdom and the members of the European Union, will be charged $80.

The changes have led to uncertainty about customs duties, required data, and handling procedures, prompting suspensions of deliveries to the US by postal services in various countries, including Mexico, Germany, France, Spain, Italy, Australia, Japan, Taiwan, India, and Switzerland. Foreign postal agencies have two options: collect and process duties based on the value of the package contents or opt for the flat rate method by collecting a flat tax based on Trump's "reciprocal" tariff rates.

The new tariffs are putting pressure on German carmakers due to increased costs and potential disruptions in supply chains. Similarly, India's textile industry is threatened by the new US tariffs, as it relies heavily on exports to the US market.

The number of de minimis packages entering the US skyrocketed from 140 million in 2014 to 1.36 billion packages by 2024. However, after the six-month transition period, postal services must shift to collecting duties on the full value of the product by February 28, 2026.

This move by the US administration is part of a broader strategy to rebalance trade relationships and protect domestic industries. The US President, Donald Trump, has ended the exemption for all countries, having previously stopped it for China in February.

The suspensions of deliveries to the US have caused a ripple effect, affecting businesses and consumers alike. It remains to be seen how these changes will shape international trade in the coming months.

Terminates tariff exemptions for low-value packages, enforces duty collection on international shipments to the U.S.