US ends tariff exemption for low‑value parcels

The United States has ended its longstanding de minimis exemption for low‑value imports, introducing immediate tariffs on all overseas parcels regardless of value or origin. The change, effective 29 August, removes the previous $800 threshold that had allowed foreign shippers to send goods to US consumers without incurring duties.

Under the updated rules, international parcels will face standard import tariffs, with a six‑month transition window during which foreign postal services can opt for flat‑rate duties ranging from $80 to $200 per shipment, based on country of origin. Once the grace period ends, only ad valorem rates will apply.

The policy revision expands a narrower rollback implemented earlier in 2025, which had applied only to parcels from China and Hong Kong. US officials have positioned the broader change as both a fiscal and security measure, with White House trade adviser Peter Navarro describing it as a permanent move expected to generate more than $10 billion in annual revenue.

The removal of the de minimis provision — long relied on by cross‑border e‑commerce exporters — has triggered a rapid response from logistics networks. According to coverage by Reuters and Axios, several European and Asian postal operators have paused or restricted US-bound low‑value shipments due to unclear processing requirements and increased cost exposure.

Retailers with strong US warehousing capabilities — including fast‑fashion giants Shein and Temu — have moved swiftly to mitigate the impact, while smaller sellers operating through platforms such as Etsy or Shopify face heightened compliance burdens and potential margin erosion.

Analysts expect consumer‑facing consequences, including higher delivery charges, longer lead times, and reduced access to affordable imported goods in discretionary categories such as apparel, homeware, and electronics.

The European Commission is reportedly monitoring the implications for EU-based businesses, while US importers and customs brokers are reassessing shipment classifications and pricing models to accommodate the regulatory shift.