U.S. to End ‘De Minimis' Tariff Loophole for Small Shipments

Wall Street Journal

5 days ago

The U.S. will end the so-called 'de minimis' tariff loophole that allows goods under $800 to enter the country duty-free, the White House said Wednesday. It had already halted the practice for Chinese goods in May.
Starting Aug. 29, even small packages received through the international postal network will be subject to 'all effective duties,' the White House said in a fact sheet, arguing that other nations have used the program to smuggle drugs and evade tariffs.
Low-value goods will be tariffed under two methods at the outset. Some will be charged an 'ad-valorem' duty that reflects the tariffs on the origin country, while others will receive a 'specific duty' ranging from $80 to $200 an item. The latter method will only be effective for six months, the document said, after which all products will be charged the ad-valorem rate. Merchandise brought back to the U.S. by American travelers will still be duty-free up to $200, as will gifts valued at $100 or less.