U.S. tariff exemption for small orders ends Friday, impacting businesses and shoppers.

New York—In a significant shift in U.S. trade policy, low-value imports are set to lose their duty-free status as part of an executive order issued by the Trump administration. This change, effective as of this week, is part of a broader strategy aimed at reducing U.S. dependence on foreign goods and recalibrating global trade dynamics through the imposition of tariffs.

The newly implemented measure will eliminate a longstanding customs exemption for international shipments valued at 0 or less, a move that comes nearly two years ahead of a previously established deadline. This policy change impacts a wide array of small businesses and individual consumers, as prior shipments that entered the U.S. without undergoing customs clearance will now be subjected to specific tariff rates tied to their country of origin.

For U.S. consumers and businesses, this marks a notable adjustment, particularly for those accustomed to navigating the “de minimis” rule, which previously allowed inexpensive items from China and Hong Kong to enter the country without incurring import taxes. As these new regulations take effect, small business owners could face heightened operational costs, necessitating careful navigation of customs and tariffs, which range anywhere from 10% to 50%.

The implications of this policy have already prompted reactions from international postal services. More than a dozen countries, including Australia, Switzerland, and Japan, have temporarily halted shipments to the U.S. due to the complexities introduced by the new customs processing requirements. This disruption reflects the growing confusion regarding the importation process, leading postal authorities to reevaluate their shipping practices.

The U.S. government’s rationale for ending the de minimis exemption hinges on concerns about its misuse by foreign entities to circumvent tariff obligations. Critics of the exemption argue that it has primarily benefited foreign businesses, notably retail platforms like Shein and Temu, which have flooded the market with low-cost goods.

Historically, the de minimis exemption dates back to 1938, originally designed to alleviate the administration burden of collecting duties on low-value imports. While the threshold has increased over time—from to 0—it has also significantly expanded the volume of shipments eligible for this treatment. According to U.S. Customs and Border Protection, a staggering 1.36 billion packages valued at .6 billion entered the U.S. last year alone.

As the impact of these changes unfolds, numerous U.S. small businesses and consumers are bracing for increased costs. Boutique owners and small retailers express concern that rising shipping and duty charges may force them to raise prices or, in some cases, even consider closing their operations. For instance, one vendor noted a projected price increase from to for a wholesale sundress due to the new import charges.

Overall, the recent policy shift marks a turning point in U.S. trade regulations with far-reaching consequences for both businesses and consumers alike, underscoring the ongoing complexities of international trade as the landscape continues to evolve.