The next round in the tariff conflict

As of Friday, the United States has eliminated duty-free imports for goods valued under $800. President Donald Trump initially revoked this exemption for China and, at the end of July, also ordered an end to duty-free status for packages from all over the world.

In recent weeks, international postal services had already begun preemptively restricting shipments to the U.S. due to the increased administrative burden. The White House now requires them to collect more detailed information about the contents of packages instead.

This regulation had previously granted duty-free status to imports with a value below $800. Trump justified the repeal by stating, among other reasons, that dangerous drugs had been smuggled into the U.S. on a large scale through such duty-free parcels. In recent years, duty-free package deliveries had surged significantly, partly driven by platforms like Temu and Shein.

After duty-free status for low-value packages from China was abolished in May, the number of such shipments to the U.S. dropped from four million to one million per day, according to government statements. Additionally, $492 million in tariffs have been collected on these packages since then.

According to the U.S. government, Chinese shippers have been seeking alternative routes through other countries. This made it necessary to extend the measure to packages from all over the world.

Under the new rules effective Friday, applicable U.S. tariffs for the country of origin must be paid on goods – for example, 15 percent for shipments from the EU and up to 50 percent for packages from India or Brazil. Alternatively, a fee ranging from $80 to $200 can be paid during a six-month transition period.

According to the UN postal agency, the end of duty-free status for low-cost packages has led postal operators in 25 countries to suspend package deliveries to the U.S.

MK