From Yahoo Finance: 2025-04-30 17:56:00

Consumers face higher prices and delivery delays as the U.S. ends duty-free imports from China, impacting businesses reliant on Chinese production. The move follows new tariffs totaling 145%, escalating the trade war with Beijing. Parcel carriers anticipate challenges in collecting duties and processing the influx of packages from China.

The de minimis rule, introduced in 1938, allowed $800 duty-free imports but now ends due to the surge of cross-border e-commerce, mainly from China. Chinese exports of low-value packages reached $66 billion in 2023. Former President Joe Biden and Trump attempted to address tariff avoidance concerns, leading to the current changes.

Consumers can expect higher prices and delays as parcels undergo a more complex customs process. Businesses may increase prices or list tariffs separately. Retailers like Temu have doubled import charges, while Shein includes tariffs in prices. Amazon plans not to display added tariff costs despite speculation.

Major carriers like UPS and FedEx are prepared to collect duties on international parcels. The U.S. Postal Service may charge tariffs or a flat fee per shipment. The U.S. Customs and Border Protection is ready to implement the new restrictions, but experts anticipate challenges due to the workload surge.

Businesses dependent on the de minimis exemption must adapt. Companies like HAPARI International are adjusting to pay additional duties while waiting for a sustainable solution between the U.S. and China. Logistic companies assisting with shipping from China foresee businesses raising prices or setting up U.S.-based warehouses.

Flag and bike manufacturers expect to benefit from the end of the duty exemption. Flag makers face competition from cheap imports, leading to decreased sales of American-made flags. Bike dealers cite safety risks and unfair competition from lookalike online products. Trade groups advocate for duties to level the playing field and protect American businesses.



Read more at Yahoo Finance: Cheap parcels from China will no longer be duty-free. Here’s what it means for buyers and sellers