Later this week, low-value imports are losing their duty-free status in the U.S. as part of President Donald Trump’s agenda for reducing the nation’s dependence on foreign goods and resetting global trade with tariffs, the Associated Press reports.
An executive order signed in July and starting Friday will eliminate a widely used customs exemption for international shipments worth $800 or less. That comes nearly two years earlier than the deadline set in the tax cuts and spending bill approved by Congress.
While the president had 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 will likely be a big change for some small businesses and online shoppers.
Purchases that used to enter the U.S. without needing to clear customs will require vetting and be subject to the tariff rate of their country of origin, which could range from 10-50%.
Carriers handling orders sent through the global mail network for the next six months can also choose a flat duty of $80-200 per package instead of the value-based rate.
In response, the national postal services of over a dozen countries said they would temporarily suspend sending some or most U.S.-bound packages due to confusion over processing and payment requirements.
