The White House said Thursday it is following through on its threat to end the “de minimis” loophole that allowed global shippers to send low-value goods straight to U.S. consumers.
For decades, de minimis treatment allowed parcels worth less than $800 to avoid duties and close inspection.
But the Trump administration said that treatment allowed fentanyl, other narcotics and pirated goods flow into the country, so they’re ending the practice.
The de minimis exemption is to cease, worldwide, at 12:01 a.m. Friday.
The decision is a big change for foreign postal systems, some of which do not have systems to calculate tariffs or duties on packages.
Some countries, including Mexico, temporarily suspended shipments to the U.S. while they catch up with the new U.S. law.
The change might be a rude awakening for customers who aren’t able to get duty-free shipments from other countries, or cannot get shippers to send foreign products to their U.S. homes at all.
White House trade adviser Peter Navarro said foreign postal services needed to “get their act together” and catch up to private carriers like FedEx, which have systems to inspect and detail what’s in the packages so that customs can collect appropriate duties.
Senior administration officials said major countries like the U.K. and Canada have taken steps to make sure there is no interruption in shipments.
Mr. Trump moved to close the loophole on China in February when he imposed new tariffs on the Asian superpower, though he reversed course after it became clear that U.S. Customs and Border Protection and the U.S. Postal Service were not ready for the change.
The administration regrouped, cracked down on Chinese shipments and signaled it would shut the door on de minimis for all packages from any country.
Mr. Navarro said the change will “save thousands of American lives” by stopping the flow of drugs, while generating revenue for the U.S. and protecting customers against counterfeit goods.
