The US has scrapped a decades-old global tariff exemption that allowed duty-free imports of low-value goods, shaking up global e-commerce supply chains.
From Friday, shipments worth $800 (£592) or less will no longer be exempt and will face stricter customs checks, a change expected to affect millions of parcels daily.
In 2023 alone, nearly 1.4 billion packages worth over $64bn entered the US duty-free under the so-called de minimis exemption, according to Customs data.
President Donald Trump fast-tracked the repeal, arguing it will protect US businesses, curb smuggling of illegal goods like fentanyl, and raise $10bn annually.
But experts warn the move will hit small businesses and consumers hardest, driving up prices, reducing product variety, and complicating cross-border trade.
Fashion retailer Tapestry, parent of Coach, expects a $160m profit hit, while smaller firms say the sudden paperwork, tariffs, and shipping delays could be devastating.
Postal services across Europe and Asia temporarily paused deliveries to the US, citing uncertainty. Some sellers are exploring costly express couriers to avoid long delays.
Letters and personal gifts under $100 remain duty-free, but most international goods will now attract tariffs or flat fees of $80–$200 per package.
For niche markets, like collectors of rare vinyl records or small artisan shoe brands, the end of de minimis threatens survival. Businesses fear customers will balk at higher prices and complex duty processes.
While US retailers may benefit, global sellers face higher barriers. Analysts say Chinese e-commerce giants like Shein and Temu, already building US warehouses could adapt fastest, widening their advantage.
“The low-cost entry point is gone,” said trade expert Tam Nguyen. “For many small businesses, this could mean the difference between growth and closure.”
