Shipping cancellations spike as U.S. ends de minimis rule
WASHINGTON — Some U.S. shoppers ordering smaller goods from overseas are seeing cancellation notices as the Trump administration ended the nearly century-old “de minimis” exemption at midnight Friday, CNBC has reported.
The rule allowed items valued under $800 to enter the country without tariffs.
It’s expiration means that the 92% of all U.S. cargo shipments — up to 4 million packages daily — that fell under the rule are no longer duty-free. All imported goods, regardless of value, will now be subject to applicable tariffs.
See also:
- U.S. Customs accuses 23 importers in shipping scheme to evade duties
- NCTO CEO issues statement about end of de minimis loophole
- 6 furniture industry execs react to potential new Trump tariffs
The administration is using a six-month phase-in period when carriers can choose between charging a percentage of the country of origin’s tariff rate or applying a flat fee of $80 to $200 per package, depending on the country’s tariff level. After that period passes, only percentage-based rates will be used.
The change alters how the international postal network handles packages bound for the U.S. Postal carriers and other qualified parties must collect duties from shippers or recipients and remit them to U.S. Customs and Border Protection.
The cost impact is projected to be significant, particularly for small and medium-sized businesses that relied heavily on duty-free imports. Trade groups have estimated that the total increase could reach tens of billions of dollars annually.
Consequences were already being felt before the official end of the exemption, with Mexico announcing yesterday that it was suspending parcel shipments to the U.S., joining some 30 foreign postal services, including India Post, Swiss Post, Japan Post and carriers in the U.K., Australia and New Zealand, that have made similar moves. Deutsche Post and DHL Parcel Germany halted deliveries late last month.
U.S. importers now face not only higher costs but also potential delays, as customs processing and compliance requirements become more complex under the new rules.
