US ends tariff exemption for small delivery packages under $800

The US has suspended tariff exemptions for small delivery packages valued at $800 or less, closing a loophole that allowed more than one billion parcels to enter the country duty-free last year.

The exemption officially ends on Friday, followed by a six-month transition to a new tariff system.

More than 30 countries, including Germany, Japan, Australia and Mexico, have already suspended or reduced shipments to the US in anticipation of the changes. Postal unions say more clarity is needed on how duties will be collected before they resume services.

Logistics giant DHL said it would halt standard business parcel deliveries to the US until “unresolved” questions are answered about who will collect customs duties and how data will be shared with US Customs and Border Protection.

A White House fact sheet outlined two options for calculating tariffs on small packages starting August 29: a flat rate of $80–$200 per item, depending on the country of origin, or a tariff based on the package value and the “reciprocal” tariff rate set by Washington.

The flat-rate option will expire after six months. After that, most small packages will be charged tariffs ranging from 10 to 40 percent. Reciprocal tariff rates for most US trade partners were set in July, though talks with China and Mexico are ongoing.

The Trump administration says the move will help reduce the US trade deficit and curb narcotics trafficking through international mail.

The so-called “de minimis exemption” had been in place since the 1930s, but was raised from $200 to $800 in 2015, fueling the rise of international e-commerce by letting retailers ship directly to customers.

According to US customs data, cross-border package volumes have grown tenfold in the last decade, from 129 million in 2014 to 1.36 billion in 2024.

The exemption also allowed Chinese e-commerce platforms like Shein and Temu to bypass tariffs placed on Chinese goods during Trump’s first term.