The US government ended this Friday to the free imports of packages with a value of less than $ 800, known as the exemption “of Minimis”. This decision increases costs for retailers around the world who sell to the United States and will probably cause a price increase for US buyers.
President Donald Trump announced on July 30 the repeal of the exemption of tariffs for the packages of all countries, which will enter into force a month later.
With this, the Government expanded the decision made in May to impose tariffs on these shipments from China and Hong Kong, which affects retailers like Shein and Temu, who make shipments mainly from China.
Next, the implications of this last measure for American buyers are detailed, as well as for some small US companies that work with foreign suppliers.
What are the reasons?
The Trump government took energetic measures against the exemption of Minimis because, he says, allowed traffickers to easily send fentanyl packages to the country.
Retailers and American industrial groups also opposed the exemption, considering that he gave an unfair advantage to foreign electronic commerce companies, such as Shein and Temu, as well as some external vendors on Amazon.
Product prices in Walmart or Target already reflect the tariffs paid by retailers when importing them, which makes them more expensive.
What does it mean?
The exemption of Minimis led a rise from cross -border electronic commerce, since US buyers took advantage of offers, including dresses of 12 dollars in TEMU.
Until May 2, orders arrived at home free of tariffs provided that their packages had a value of less than $ 800.
In fiscal year 2024, 1,360 million shipments were received under the exemption of Minimis with a declared value of 64.6 billion dollars.
According to data from the US government, around 73% of the minimis packages that entered the US came from China in 2024.
Letters and gifts with a value of less than 100 dollars sent to the US by individuals will remain exempt from tariffs under the new standards.
What countries are the most affected by the exemption of Minimis?
Canada, Mexico and the United Kingdom are the following senior seniors, according to figures from the US office and border protection (CBP). The logistics provider Red Stag Fulfillment indicated that other important sources include India, South Korea, Thailand and Vietnam.
Since China’s exemption was eliminated on May 2, Minimis volumes were reduced by approximately one third, says Red Stag.
The small British companies that sell American buyers already alerted their customers about price increases. The Merchant & Mills sewing patterns and fabrics, for example, announced on an Instagram post that would increase its US prices by 15% to cover tariffs.
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What are the repercussions of this measure against Minimis?
The change caused turbulence in postal services around the world, with Post Australia, Deutsche Post of Germany, Japan Post, Korea Post and other companies suspending their shipments to the US while adapting.
Royal Mail from Great Britain resumed shipments on Thursday, indicating that customers can send packages through a “postal delivery with paid rights”, paying the rights in advance, as well as a management rate to cover additional costs of dispatch to the US.
“It is very difficult for the mail to enter an environment where they have to raise rights in the US, when they have never raised them,” said Clint Reid, founder and executive director of Zonos, whose software helps companies calculate, raise and send rights.
The CBP said it was taking the necessary measures to implement the order.
The new tariff regime will also increase paperwork for sellers, since US customs require information on the origin and type of merchandise in packages.
In February, the Trump administration suspended its initial prohibition of minimis shipments from China, since the packages accumulated in US customs, and granted more time before the change went into force.
What does it mean for online retailers?
The e -commerce giants Shein and Temu had time to adapt to change since May. While prices in Shein began to rise, the last change could place it in a better position than some competitors, said Yao Jin, associate professor of supply chain management at the University of Miami.
“It is now relatively economical to send from China, simply because the cost of direct shipping from other countries has also increased,” said Jin.
How are small businesses affected?
Small businesses find it more difficult to absorb tariffs, and some plan to increase their prices to compensate them.
Platforms such as EBAY and ETSY, where individuals and small businesses sell everything, from old soccer shirts to electronic products, have advised sellers to communicate with their customers about the increases in prices related to tariffs.
With Reuters information
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