A crucial exemption for small international shipments worth $800 or less in the US will expire on Friday. The “de minimis” rule, which was introduced in 1938, allowed these low-value imports to enter the country duty-free. However, the Trump administration has decided to end this loophole, citing its exploitation by foreign businesses and the influx of counterfeit products.
As a result, most small businesses and online shoppers will now have to pay import taxes on their purchases. The tariffs can range from 10% to 50%. For six months, carriers can opt for a flat duty rate of $80 to $200 per package instead of the value-based rate.
Several countries, including Japan, Switzerland, Australia, Austria, Belgium, Finland, France, Germany, India, Italy, Norway, Spain, Sweden, Denmark, Thailand, the U.K., and New Zealand, have temporarily suspended sending packages to the US due to confusion over processing and payment requirements.
The move has sparked concerns among small business owners, who rely on imported products and materials. Boutique owner Kristin Trainor fears that the end of the de minimis exemption will lead to higher costs for her European apparel suppliers. “Our business model is to provide casual chic and unique clothes at affordable prices,” she said. “The added customs and duty charges will eliminate that affordability.”
Other businesses, such as CoverSeal and A Sight For Sport Eyes, also face challenges due to the end of the exemption. They rely on international manufacturers for certain products, but may need to raise prices or change their business models.
The US has a similar exemption with a lower threshold in some European countries. However, the Trump administration believes that this measure will help reduce the nation’s dependence on foreign goods and reset global trade with tariffs.
Source: https://apnews.com/article/de-minimis-exemption-end-date-dutyfree-48862fc5b6a563a077284e364fb14f08