Fri Aug 29 03:26:45 UTC 2025: **News Article:**
**US Ends “De Minimis” Exemption, Disrupting Global E-Commerce**
Washington, D.C. – The United States is set to end its “de minimis” import tax exemption on Friday, a move that could significantly disrupt global e-commerce and home delivery services. For years, this exemption allowed packages valued at $800 or less to enter the US without customs duties, fueling a surge in online shopping and international shipping.
The change, which follows a six-month transition period, will introduce new tariff rates on small packages. Initially, a flat rate of $80 to $200 per item (depending on the country of origin) or a tariff based on the package’s value and a “reciprocal” tariff rate set by the White House will be applied. After six months, all small packages will be subject to a tariff of 10 to 40 percent for most countries.
The move has sparked widespread concern within the global logistics industry. DHL, a major player in the sector, has announced it will suspend standard business parcel shipments to the US until “unresolved” questions regarding customs duty collection and data transmission to US Customs and Border Protection are answered.
Over 30 countries, including Australia, Germany, Japan, and Mexico, have already suspended or partially suspended package shipments to the US in anticipation of the cost change. Postal unions worldwide are also seeking more clarity on the tariff calculation process before resuming shipments.
The Trump administration argues that ending the “de minimis exemption” is necessary to lower the US trade deficit and curb the flow of narcotics across borders. The exemption, initially established in the 1930s, became a significant driver of e-commerce after its value was raised from $200 to $800 in 2015. This allowed retailers to ship directly to consumers without incurring import taxes on smaller items. Consequently, the number of packages entering the US annually increased tenfold over the past decade, reaching 1.36 billion.
Previously, the exemption had also allowed Chinese e-commerce giants such as Shein and Temu to avoid tariffs imposed on Chinese goods during Trump’s first term. The long-term implications of this policy shift on consumers, businesses, and international trade remain to be seen.
First Piper 