U.S. Tariff Exemption for Small Packages to Be Canceled

  • 2025-08-26


U.S. Tariff Exemption for Small Packages to Be Canceled


  Starting this Friday (August 29), all imported goods shipped to the United States by means other than the international postal network, with a value below $800 and originally eligible for minimal tax exemption, will be subject to all applicable tariffs, ranging from a minimum of 15% to a maximum of 50%.

  According to Xinhua News Agency, postal operators in European countries such as France, Germany, Sweden, and Norway have announced the suspension of private parcel services to the U.S. with a value below €100; the UK's Royal Mail will impose additional handling fees; Bosnia and Herzegovina, Slovenia, and Croatia have even suspended all shipments to the U.S.

  Analysts further pointed out that the White House's unilateral cancellation of the tax exemption for low-value goods will hit small and micro enterprises relying on cross-border e-commerce the hardest. These additional costs include potential storage fees and expenses incurred from being returned by U.S. Customs.

  Last Friday was also the deadline for orders from many small cross-border businesses. Abbott Atelier Jewelry, a niche jewelry brand based in Vancouver, Canada, informed its customers via its Instagram account that the company is seeking solutions but will suspend shopping services in the meantime.

  Wool Warehouse, a UK-based craft company, estimated that its additional costs for exports to the U.S. could increase by half as a result. The company expects that American customers will be unwilling to bear such high costs and has therefore decided to suspend shipments from August 21.

  On TikTok, Shed Maid, a UK-based jewelry manufacturer, stated that orders from U.S. customers account for 50% of its total shipments. The shop cannot afford such significant losses and has decided to close from August 29.

  The White House explained the rationale for canceling the exemption as follows: shippers exploit the lower security measures applicable to small packages to transport synthetic opioids such as illicit fentanyl and other drugs into the United States. Safeguarding national security and protecting domestic manufacturing are commonly used justifications for U.S. trade decisions.

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