The White House said Wednesday that the U.S. is suspending a “minimum” exemption that allows low-value commercial goods to be shipped to the U.S. without facing tariffs.
The White House said parcels sent to the U.S. outside the U.S. International Postal Network with box office value below or below $800 will now face “all applicable tariffs” on August 29, according to an executive order signed by U.S. President Donald Trump on Wednesday.
Trump earlier targeted parcels for China and Hong Kong, and the White House said the recently signed tax and expenditure bill repealed the legal basis for a global minimum exemption starting July 1, 2027.
“Trump’s actions have suspended minimum exemptions faster than Obuba asked to respond to national emergencies and save American lives and businesses,” the White House said in a fact sheet.
Goods shipped through the postal system will face one of two tariffs: either the “Ad Valorem tax” equals the effective tariff rate for the packaging country of origin, or within six months, a specific tariff of $80 to $200 in the United States based on the tariff rate for the country of origin.
Annual transportation rose sharply
Between 2015 and 2024, the volume of De Minimis cargo entering the United States increased from 134 million goods to more than 1.36 billion goods. U.S. Customs ships over 4 million minimum shipping per day.
Air cargo volumes in Asia have dropped 10.7% since the U.S. canceled its tax exemption from low-value kits from China in early May, Reuters reported.
However, since May 2, goods sent from China and Hong Kong were initially taxed at a rate of up to 145%, and then settled to 30% after mid-May trade between the United States and China was determined.
Republican U.S. Senator Jim Banks of Indiana praised the actions taken by the Trump administration, saying: “For too long, countries like China are already full of tax-free, cheap imports.”
