Market Data

US de minimis Loophole Closure Sends Ripples Through Global E-Commerce

The United States has officially ended its 86-year-old de minimis exemption, which previously allowed imports valued at $800 or less to enter the country duty-free. This policy shift, enacted by President Trump, aims to close loopholes exploited by e-commerce giants and address concerns over illicit goods entering the U.S.

Impact on Global Postal Services

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In response to the policy change, several international postal services have suspended shipments to the U.S. European carriers such as La Poste (France), PostNord (Sweden and Denmark), Austrian Post, and Posten Bring (Norway) have halted deliveries due to uncertainties regarding new customs procedures and the need for additional data collection. Similarly, Japan Post and Australia Post have implemented temporary restrictions on U.S.-bound parcels.

Challenges for Small Exporters

Small businesses and online merchants, particularly those in Europe and Asia, are facing significant challenges as a result of the de minimis exemption’s removal. Companies that previously shipped low-value goods duty-free are now subject to tariffs ranging from 10% to 50%, depending on the country of origin. This change is expected to increase costs for consumers and may lead to delays in shipments.

Also Read: US logistics managers’ index edges up to 59.3 in August

Broader Implications

The closure of the de minimis loophole is reshaping cross-border e-commerce, with nearly every consumer parcel now attracting duties and facing stricter data checks at U.S. borders. The policy change is part of broader efforts to address trade imbalances and enhance national security by curbing the entry of counterfeit and illicit goods. While the move aims to level the playing field for domestic retailers, it poses challenges for international sellers and consumers who have benefited from the previous exemption.

Looking Ahead

As the U.S. implements these new customs regulations, international postal services and e-commerce platforms are working to adapt to the changes. The full impact of the de minimis exemption’s removal will unfold over the coming months as stakeholders navigate the evolving landscape of global trade.

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