US Imposes Global Tariffs on Small Parcels

The United States has ended tariff exemptions on small parcels entering the country, a move that has sparked concerns among businesses and warnings of higher costs for consumers.

The policy, introduced under the Trump administration, targets low-value shipments that were previously exempt from customs duties if valued at 800 dollars or less. Officials argue that the exemption was increasingly exploited for tariff evasion and drug smuggling.

Under the new rules, parcels are now subject either to the same tariffs applied to exporting countries or to fixed charges ranging between 80 and 200 dollars per item. Some personal items and gifts remain exempt, but most commercial shipments will face additional costs.

The decision has triggered disruptions in global postal services. Postal operators in countries such as France, Germany, Italy, India, Australia, and Japan announced they would no longer accept most parcels destined for the US. 

The UK’s Royal Mail introduced new services to help customers continue shipments, while the United Nations Universal Postal Union reported that at least 25 postal operators have suspended services to the US.

American officials maintain that the change is necessary to reduce the flow of dangerous goods while increasing customs revenue. However, the impact on businesses, particularly small and medium-sized enterprises, is expected to be significant.

UK-based retailers have already halted shipments to American customers until postal systems adapt to the new rules. For many online sellers, US buyers account for a substantial share of revenue, making the new tariffs a potential threat to profitability. With thin profit margins, some businesses have warned they may be forced to raise prices to offset the added costs.

Economists have cautioned that customs systems will require time to adapt, leading to potential delivery delays and additional costs for consumers. While larger companies may be able to absorb these changes, smaller businesses will likely face greater challenges.

The policy shift is expected to have a particularly strong impact on Chinese-founded e-commerce platforms such as Shein and Temu, which relied heavily on low-cost parcel exemptions to reach American consumers.

US-based importers have also been hit. One California manufacturer, which produces protective covers in China and Mexico, said the end of tariff exemptions has forced the company to cancel free shipping offers and rethink supply chains.