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Trump Administration Ends Tariff Exemption for Small Packages

A long-standing tariff exemption for low-value imports officially ended at 12:01 a.m. Friday, meaning all packages under $800 entering the United States are now subject to duties.

The move closes the “de minimis” loophole, which President Donald Trump had already eliminated earlier this year for shipments from China and Hong Kong. Administration officials say extending the measure to all countries will strengthen U.S. trade enforcement and help stem the flow of contraband, including fentanyl, often smuggled through small parcels.

Senior aides hailed the change as a key step in Trump’s push to “rebalance trade.” Peter Navarro, the president’s trade adviser, called the exemption a “deadly de minimis loophole,” estimating its closure will generate up to $10 billion in tariff revenue while restricting “narcotics and other prohibited items.”

Officials noted that small-value packages will now face normal tariff rates based on their country of origin. To ease the transition, shippers may opt for a flat fee of $80–$200 per item for the next six months, depending on origin.

Major carriers including UPS, FedEx, and DHL have confirmed they will continue U.S. shipments despite the new tariffs. Administration officials said shipping companies had ample warning and should experience no major disruptions. Customs and Border Protection has assured that staff are “ready” to manage the added workload.

Officials also emphasized that small parcels account for the majority of goods seized for health, safety, and intellectual-property violations. “These packages have become really deadly smuggling devices,” one senior official warned.

The administration has urged foreign postal services to strengthen oversight, accusing them of “vastly underperforming” compared to private express carriers. Critics, however, have raised concerns about higher consumer costs and potential strain on supply chains as the new rules take hold.

 

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