The United States is set to abolish its long-standing tariff exemption for imported parcels valued under $800, a move poised to reshape international e-commerce and supply chains.
Beginning Friday, U.S. Customs and Border Protection (CBP) will start collecting standard duties on all global package shipments regardless of value, ending the so-called “de minimis” provision that’s been a hallmark of American customs policy since 1938.
Authorities introduced a six-month transition, during which foreign postal services can opt to pay a flat fee ranging from $80 to $200 per shipment, depending on the country of origin. The change permanently expands the Trump administration’s earlier removal of the duty-free threshold for parcels from China and Hong Kong, extending the policy to all trading partners.
The White House argues the overhaul will curb illicit narcotics—such as fentanyl—often smuggled in small parcels, while forecasting up to $10 billion annually in new tariff revenues. This closes a deadly loophole and will save thousands of American lives, said trade adviser Peter Navarro.
A senior administration official confirmed the elimination is indefinite, quashing any chance of a revival for even the U.S.’s closest trading partners.
The threshold, raised from $200 to $800 in 2015 to spur e-commerce and support small businesses, has seen the volume of inbound duty-free packages surge, notably coinciding with the rise of Chinese online platforms like Shein and Temu.
CBP figures show de minimis-eligible parcels soared from 139 million in 2015 to an estimated 1.36 billion in 2024. Since eliminating the exemption for China and Hong Kong in May, more than $492 million in tariffs have already been collected.
From Friday onward, full duties will apply to parcels sent via major express operators including FedEx, UPS, and DHL, with those companies responsible for duty collection and paperwork.
Foreign postal entities can either adhere to the flat fee based on CBP’s reciprocal country-by-country rates—$80 for origins with sub-16% tariffs, such as Britain and the EU; $160 for mid-tier rates like Indonesia and Vietnam; and $200 for higher tariffs, including China, Brazil, India and Canada—or transition to value-based duty collection by February 2026.
While some postal operators have temporarily halted shipments to the U.S., officials say discussions with international partners and the USPS are ongoing to smooth disruptions. Major partners including the UK, Canada and Ukraine have confirmed business as usual for their shipments.
