U.S. Ends Nearly 90-Year-Old Duty-Free Rule for Small Packages

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U.S. Ends Nearly 90-Year-Old Duty-Free Rule for Small Packages

03.09.2025 News

The United States has abolished duty-free tariffs for parcels worth up to $800, known as the de minimis exemption. This benefit had been in place since 1938 and was raised from $200 to $800 in 2015 to boost small businesses on online marketplaces, Reuters reports.

A six-month transition period will follow, during which postal services may opt to pay a fixed duty of $80 to $200 per parcel, depending on the country of origin.

During Donald Trump’s first term, tariffs on Chinese goods were raised, leading to a surge in direct shipments from China that fueled the growth of retailers like Shein and Temu. Many of these parcels entered without inspection.

The number of shipments claiming de minimis exemption jumped nearly tenfold — from 139 million in the 2015 fiscal year to 1.36 billion in 2024.

Officially, the repeal is tied to efforts to combat illegal drug imports and to protect U.S. retailers.

White House trade adviser Peter Navarro told reporters that closing the de minimis loophole would “save thousands of American lives by limiting drug inflows and add up to $10 billion a year to the federal budget in customs revenue.”

The repeal has complicated logistics: postal operators in Australia, the UK, Germany, Japan, and others have suspended shipments to the U.S. while adapting to the new rules.

Ukrainian carriers Ukrposhta and Nova Poshta continue to deliver to the U.S., but their services have become more expensive.

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