The Trump administration has made sweeping and harmful changes to tariffs on small-value packages, like eCommerce from China and Hong Kong. As of 12:01 a.m. on Friday, the “de minimis” tariff exemption expired, meaning that packages valued under $800 will now incur additional taxes upon entering the United States. This ruling is a significant departure from the previous precedent that small-dollar packages were exempt from tariffs.
For one, under the new regulations packages shipped into the U.S. will be taxed. These taxes will be imposed at the ad valorem rate that would apply in the package’s country of origin. That’s a big difference given that this change applies to the most recent and varied shipment of goods. It is extremely important for consumers and American businesses to understand what these new, broad tariffs mean. Unfortunately, the exemption has recently expired. This comes after the administration’s first announcement that provided shipping companies with six months to adjust to the new rule.
Major shipping companies, including UPS, FedEx, and DHL, have confirmed their commitment to continue operations in the U.S. despite the new tariff structure. They are well positioned to handle the complex logistics that will come with such a change. The administration has repeatedly said that these companies are just as confident as they are, and that they are prepared for the rollout of these new rules.
You’ll be charged a flat fee of $80 to $200 per item. The exact credit amount varies based on what the tariff rate was set to for the item’s country of origin. This change is meant to reduce some of the up front costs that would result from these new taxes.
Even with the advanced preparations by the top eight shipping companies, significant concerns remain about the practical logistics of this regulatory shift. Industry experts are concerned about the impact of these new tariffs on shipping turnaround times and costs. Small businesses, especially, will feel the pinch, as they rely on low-cost shipping choices for overseas orders.
