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The United States ends tax exemption for small parcels

The U.S. government is implementing a new measure, effective from August 29, prompted by the vast increase in postal shipments, which rose from 134 million units in 2015 to over 1.36 billion in 2024.

According to Trump’s statement, the measure aims to “close a catastrophic loophole used, among other things, to evade customs duties and ship synthetic opioids and other dangerous products.”

These small packages are said to account for 98% of narcotics, 97% of counterfeit goods, and 70% of health-threatening items seized in 2024, as per the U.S. Customs and Border Protection (CBP).

Previously known as “de minimis” exemptions, these allowed goods valued under $800 to be sent via postal shipments without incurring an import charge upon entering the country.

With the suspension of this exemption, packages will be taxed at the same rate as other products from the country of origin, or at a specific rate depending on the product type and its origin.

This is not the first time the White House has targeted shipments benefiting from this exemption.

After an investigation launched by the former Biden administration, Donald Trump initially targeted small shipments from China, which constitute the majority sent to the United States, particularly those from online commerce companies like Temu, Shein, and AliExpress.

An initial executive order in early April suspended the exemption for shipments from China. A week later, Trump announced a tripling of customs duties from 30% to 90% for these shipments, effective from early May, mirroring the increased tariffs on other Chinese products at that time.

Trade negotiations between Beijing and Washington have since reduced these tariffs to 54% as both countries continue discussions on a trade agreement, though with no successful resolution so far.

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