.-') _ .-') _ | |
( OO ) ) ( OO ) ) | |
.-----. ,--./ ,--,' ,--./ ,--,' | |
' .--./ | \ | |\ | \ | |\ | |
| |('-. | \| | )| \| | ) | |
/_) |OO )| . |/ | . |/ | |
|| |`-'| | |\ | | |\ | | |
(_' '--'\ | | \ | | | \ | | |
`-----' `--' `--' `--' `--' | |
lite.cnn.com - on gopher - inofficial | |
ARTICLE VIEW: | |
End of an era: Billions of packages of ‘cheap’ goods shipped to the | |
US are now subject to steep tariffs | |
By Elisabeth Buchwald, CNN | |
Updated: | |
1:04 AM EDT, Fri August 29, 2025 | |
Source: CNN | |
A big change to all the “cheap goods” Americans order just went | |
into effect. | |
For nearly a century, low-value packages of goods from abroad have | |
entered the United States duty free, thanks to what’s known as the | |
“de minimis rule,” which as of 2015 has applied to packages worth | |
less than $800. | |
The loophole has reshaped the way countless Americans shop, enabling | |
many to sell goods to US consumers with relative ease and allowing, in | |
particular, ultra-low-cost Chinese e-commerce sites like Shein, Temu | |
and AliExpress to sell everything from clothing to furniture to | |
electronics directly to American shoppers, escaping many duties in | |
place for packages exceeding the $800 threshold. | |
But those days are over. As of one minute past midnight Eastern Time, | |
all imported goods — regardless of their value — are now subject to | |
10% to 50% tariff rates, depending on their country of origin. (In | |
certain cases, they could face a flat fee of $80 to $200, but only for | |
the next six months.) | |
A headache for delivery services | |
Ahead of the expiration of the de minimis rule, a across Europe, as | |
well as Japan, Australia, Taiwan and Mexico suspended deliveries to the | |
United States, citing logistical compliance challenges. | |
International shipper UPS, meanwhile, said in a statement to CNN | |
Thursday: “We stand ready for the new changes and do not anticipate | |
any backlogs or delays.” | |
DHL, which suspended service for standard parcel shipments from Germany | |
but is continuing to ship international packages to the United States | |
from all other countries it serves, told CNN that shipments “may | |
experience delays during the transitional period as all parties adjust | |
to the changes in tariff policy and regulation.” | |
The United States Postal Service and FedEx declined to comment on | |
whether customers should anticipate delays. | |
“Our systems are fully programmed and equipped to support the | |
seamless implementation of these changes. CBP has prepared extensively | |
for this transition and stands ready with a comprehensive strategy, | |
having provided clear and timely guidance to supply chain partners, | |
including foreign postal operators, carriers, and qualified third | |
parties to ensure compliance with the new rules. | |
Susan Thomas, the acting executive assistant commissioner for Customs | |
and Border Protection’s Office of Trade, told CNN in a statement that | |
the agency’s systems “are fully programmed and equipped to support | |
the seamless implementation of these changes.” | |
“CBP has prepared extensively for this transition and stands ready | |
with a comprehensive strategy, having provided clear and timely | |
guidance to supply chain partners, including foreign postal operators, | |
carriers, and qualified third parties to ensure compliance with the new | |
rules,” she said. | |
A potential benefit for some American small businesses | |
While some small businesses, like some individual consumers, have | |
benefited from the de minimis exemption by purchasing goods duty-free, | |
the end of the exemption may benefit some, too. | |
For Steve Raderstorf, co-owner of Scrub Identity, which sells scrubs | |
and other medical apparel at two stores located in Indianapolis, the | |
tariff change will “level the playing field” for him and, he | |
believes, other small business owners, he said. | |
A 2023 report by Coalition for a Prosperous America, a group that | |
advocates for US producers and manufacturers, estimates that e-commerce | |
giants like Amazon and Walmart took in hundreds of billions of dollars | |
in revenue in 2022 through their networks of third-party sellers who | |
took advantage of the loophole. | |
Raderstorf said almost all the goods he sells are imported. But as a | |
small business, he doesn’t have the ability to set up a third-party | |
network to tap into the exemption. Instead, his imported goods are all | |
subject to applicable tariffs. | |
Additionally, many of the foreign manufacturers from whom he purchases | |
goods in bulk in order to get a better price have benefited from de | |
minimis by setting up sites to sell directly to people who could have | |
otherwise shopped at his stores. | |
With de minimis gone, he feels small businesses have a better chance to | |
compete more fairly with mega retailers and also support their local | |
communities more. | |
“When somebody comes to my door and they want me to support the local | |
football team or baseball team, I have money to do that then, and then | |
it gets back into the community,” he told CNN. “When it goes to | |
China, it never, ever stays in the United States — it’s gone for | |
good.” | |
Since the de minimis exemption was closed for China and Hong Kong, CBP | |
has seen packages that would have otherwise qualified for duty-free | |
status go down from an average of 4 million a day to 1 million, White | |
House officials told reporters Thursday. | |
Raderstorf is empathetic to Americans who are concerned about the | |
increased cost of goods — but at the same time, he’s hopeful it’s | |
“going to push them back out into their communities to meet their | |
local retailers.” | |
<- back to index |