The U.S. ended tariff exemptions for parcel imports, leading to cost increases and supply chain disruptions. The change broadens the cancellation of the de minimis exemption, boosting U.S. customs revenues by $10 billion annually. Direct shipments from China surged, benefiting e-commerce firms. The National Coalition of Textile Organizations hailed the closure of a loophole for U.S. manufacturing.

The customs agency estimates a 10-fold increase in packages claiming the de minimis exemption. More than 25 foreign postal services suspended mail to the U.S. to avoid a chaotic package pile-up. Industry has had time to react to the changes. European postal groups are seeking ways to handle new fees and paperwork.

The end of de minimis is likely to raise prices for goods sold through e-commerce companies. It may affect trade on peer-to-peer platforms like eBay and Etsy. The customs agency has collected over $492 million in additional duties from China and Hong Kong. Foreign postal agencies can collect duties based on package contents or a flat tax based on the country of origin’s tariff rate.

Read more at Yahoo Finance: US tariff exemption for low-value packages ends with few hiccups but higher costs loom