at least not without the consumer paying exorbitant fees, and many countries and carriers have stopped all shipments under $800 to the US.
International postal services are suspending shipments to the United States after an exemption on tariff duties for small packages is set to expire. It’s the latest example of how President Donald Trump’s sweeping trade policy is impacting US consumers and businesses.
Beginning Friday, the “de minimis” exemption, which allowed shipments of goods worth $800 or less to enter the United States duty free, will be eliminated.
It’s another blow to the exemption that provided a loophole for e-commerce giants: In May, the Trump administration suspended the rule on packages coming from China and Hong Kong. Those high duties, which were reduced from 120% to 54%, especially hurt low-cost sellers like Shein and Temu.
European and Asian postal services have taken matters into their own hands by announcing plans to halt shipments as early as Monday. Singapore’s SingPost and India’s Department of Posts said they will also temporarily suspend some shipments to the United States.
International postal service DHL said August 25 will be the last day it accepts shipments to the United States, joining European peers in halting shipments, including the Austrian Post, which will stop accepting shipments to the United States on August 26.
“There is currently insufficient information available on the customs clearance procedures that will be required in the future. This tightening of regulations poses major challenges for all postal companies worldwide when shipping goods to the USA,” the Austrian Post said.
The change is expected to affect discount sellers, like Amazon, Haul and TikTok Shop, as well as online marketplaces Etsy and Shopify, all of which have connected US consumers to businesses worldwide.
Reshaping business models
US Customs and Border Protection estimated that more than 1.36 billion de minimis shipments entered the country last fiscal year. The agency processes more than 4 million de minimis shipments each day.
According to the latest executive order, businesses may face an $80 per item charge for a country with a tariff rate less than 16%, or costs as high as $160 per item for a country with a tariff rate of between 16% and 25%, and $200 per item for a country with a tariff rate above 25%. On August 7, the US imposed new tariff rates on many trading partners, with Brazil facing the highest tariff rate, at 50%.