De minimis exemption ends today: Here’s the latest on how it will impact you and your packages

On Friday, August 29, the United States officially removed its tariff exemption on goods valued at less than $800, a decision that will impact customers and retailers worldwide. It previously ended for packages from China and Hong Kong in May of this year. Here’s what to know:

What is the de minimus exemption? 

The loophole, known as the de minimis exemption, allowed for $64.6 billion worth of goods to enter the United States duty free in 2024, according to data from the U.S. Customs and Border Patrol Agency. The only exception still allowed is for letters or actual gifts sent directly from one person to another that are valued at under $100.

How will the change impact package delivery from other countries? 

Uncertainty around liability for the new tariffs has led many foreign post offices to suspend some, if not all, mail to the United States.

Such is the case for a majority of European nations, with countries such as Germany, Sweden, and Italy suspending most services to the U.S. over the weekend. France followed suit on Monday, with the UK cutting off package delivery on Tuesday. 

These national postal services aimed to deliver any existing packages before the exemption ended on Friday. In some cases, those that arrive after the rule change could be returned to sender as a way to avoid fees.

Certain countries, like New Zealand, have issued warnings that the receiver will be responsible for any tariffs incurred. 

Countries from Japan and South Korea to Canada and Mexico have also added restrictions or new stipulations. Canada Post, for instance, is only accepting U.S.-bound shipments with proof that the customer has either prepaid the duty or set up automatic billing.  

How are retail businesses responding to the changes?

Companies have been taking steps to adjust shipments to the United States. For example, on August 25, Etsy suspended postage purchases for packages to the U.S. through Australia Post, Canada Post, Evri, and Royal Mail in the UK.

“Given the complexities, legal requirements, and poor experience, many postal providers will be suspending DDU service or changing delivery options to the US,” the company stated. “We are in close contact with these carriers and will reactivate label offerings on Etsy when they are able to support orders into the US with DDP options.” 

Some small businesses that ship to the U.S. also ran sales in recent weeks, hoping to give customers a chance before the companies are forced to raise their prices.

Brands are also using their email marketing to announce necessary price hikes, even in cases where they’re absorbing part of the additional costs.