The United States on Friday officially ended its long-standing tariff exemption for small packages valued at $800 or less, a policy change that has triggered concerns about rising costs and delivery delays for small businesses and consumers. The move, spearheaded by the Trump administration, aims to close a loophole used to evade tariffs and smuggle narcotics.
Under the new regime, parcels will either face the tariff level set by their country of origin or a flat fee between $80 and $200 per item during a six-month transition. The administration cited the need to curb illegal imports while bolstering customs revenues—even as it left some exemptions intact for certain personal items and gifts.
The abrupt deadline prompted postal disruptions globally. “Foreign post offices need to get their act together when it comes to monitoring and policing the use of international mail for smuggling and tariff evasion purposes,” trade adviser Peter Navarro said, highlighting tensions between enforcement and logistical readiness.
Small retailers are already feeling the strain. A UK seller, whose U.S. customers make up 20 percent of her business, warned: “Our margins are too tight to be able to absorb that.”