US ends tariff exemption for all low-value packages

A cargo ship full of shipping containers is seen at the port of Oakland, as trade tensions escalate over U.S. tariffs, in Oakland, Calif., March 6. On Wednesday, the U.S. said it was ending the low-value package tariff exemption.

A cargo ship full of shipping containers is seen at the port of Oakland, as trade tensions escalate over U.S. tariffs, in Oakland, Calif., March 6. On Wednesday, the U.S. said it was ending the low-value package tariff exemption. (Carlos Barria, Reuters)


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KEY TAKEAWAYS
  • The U.S. ends the de minimis exemption for low-value shipments under $800.
  • New tariffs apply to non-postal packages starting August 29, per Trump's order.

WASHINGTON — The United States is suspending a "de minimis" exemption that allowed low-value commercial shipments to be shipped to the U.S. without facing tariffs, the White House said on Wednesday.

Under an executive order signed by President Donald Trump on Wednesday, packages valued at or under $800 sent to the U.S. outside of the international postal network will now face "all applicable duties" starting Aug. 29, the White House said.

Trump earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027.

"Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now," the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act.

Goods shipped through the postal system will face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200, depending on the country of origin's tariff rate.

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

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