NEW YORK -- Low-value imports are losing their duty-free status in the United States this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods and resetting global trade with tariffs.An executive order signed last month eliminates a widely used customs exemption for international shipments worth $800 or less starting Friday, nearly two years earlier than the deadline set in the tax cuts and spending bill approved by Congress.
Although the president previously ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers.Purchases that previously entered the U.S.without needing to clear customs will require vetting and be subject to their origin country's applicable tariff rate, which can range from 10% to 50%.
For the next six months, carriers handling orders sent through the global mail network also can choose a flat duty of $80 to $200 per package instead of the value-based rate.In response, the national postal services of more than a dozen countries said they would temporarily suspend sending some or most U.S.-bound packages due to confusion over processing and payment requirements.
Japan and Switzerland on Monday joined Australia, Austria, Belgium, Finland, France, Germany, India, Italy, Norway, Spain, Sweden, Denmark, Thailand, the U.K.and New Zealand in saying they would pause shipments.
The Trump administration says the exemption has become a loophole that foreign businesses exploit to evade tariffs and criminals use to get drugs, counterfeit products and other contraband into the U.S.Former President Joe Biden and members of Congress also discussed the issue.
Other countries have similar exemptions, but the threshold is usually lower.For example, 150 euros ($129) is the value limit in the 20 European Union countries that use the euro as their of...