United States Eliminates De Minimis Tariffs
The U.S. government eliminated a tariff exemption for low-value package shipments that was in place for nearly 90 years. The new policy took effect at 12:01 p.m. on Friday, Aug. 29. The tariffs, which will affect goods coming from all U.S. trading partners, will apply to commercial packages sent to the United States that are valued at or below $800. Letters and gifts worth less than $100 are still exempt from trade penalties. As The Hill reported,
U.S. senior administration officials said the decision will help combat drug trafficking, piracy, and counterfeit goods and also will generate significant revenues. “President Trump’s ending of the deadly de minimis loophole will save thousands of American lives by restricting the flow of narcotics and other dangerous and prohibited items, add up to $10 billion a year in tariff revenues to our Treasury, create thousands of jobs, and defend against billions of dollar more in losses in counterfeiting, piracy, and intellectual property theft,” Trump trade adviser Peter Navarro said.
Read the U.S. Customs and Border Protection’s statement at this link. Read CBP’s guidance at this link.