Time - Shippers around the world have begun pausing some deliveries to the U.S. as a customs tax exemption for low-value goods will come to an end this Friday.
President Donald Trump issued a July 30 executive order to close the de minimis exemption, a customs tax rule that has allowed millions of cheap shipments everyday to flow into the U.S., for all countries, effective Aug. 29, as part of his broader protectionist trade campaign.
The exemption let parcels under $800 enter the U.S. without customs duties, making the shipments cheaper and faster for businesses and consumers. Already, global shippers from dozens of countries have suspended U.S. deliveries as they anticipate the end of the exemption—a move that experts say could lead to higher prices for U.S. consumers, shipping delays, and in the long term a shift in global supply chains.
While some speculate that the growing global response to the end of the de minimis exemption may persuade Trump to reverse course on yet another position, the “One Big Beautiful Bill,” which was signed into law in July, requires the exemption to be permanently eliminated by July 2027.
.Postal services in a growing number of countries have announced pauses to their deliveries to the U.S. Shippers in Europe said they would suspend most shipments to the U.S. this week. Australia’s postal service on Tuesday said it would be doing the same, as have postal services from India, New Zealand, Taiwan, and Japan. The United Nations’ Universal Postal Union said on Tuesday that postal operators of 25 member countries have suspended services to the U.S.
“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out,” DHL said on Aug. 22, announcing that Deutsche Post and DHL Parcel Germany will pause deliveries to the U.S.
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