US ends duty-free exemption for low-value parcels

The US duty-free exemption for imported parcels valued at less than $800 expired on Friday, raising costs and disrupting supply chain models for e-commerce companies, while also negatively impacting consumers.

President Donald Trump had earlier announced the elimination of the tariff exemption, which previously allowed goods under $800 to enter the US free of customs duties. As a result, all imported parcels will now be subject to tariffs regardless of their value.

Starting today, US Customs and Border Protection will begin collecting regular duties on all incoming parcels—irrespective of value, country of origin, or mode of shipment.

The agency has offered an interim option of fixed tariffs ranging from $80 to $200 per parcel shipped from foreign postal services for a six-month period.

White House trade adviser Peter Navarro told reporters on Thursday, as reported by Reuters, that closing this “deadly tariff loophole” would save thousands of American lives by restricting the flow of drugs and other dangerous contraband, while adding up to $10 billion annually in tariff revenues to the US Treasury.