A long-standing worldwide tariff exemption that was frequently utilized by consumers of inexpensive items has been terminated by the US. In a measure that could impact millions of shipments daily, goods worth $800 (£592) or less will no longer be duty-free and will be subject to stricter customs inspections starting Friday.
According to US Customs, about 1.4 billion shipments, totalling over $64 billion, entered the country duty-free last year under a provision known as the de minimis exemption. According to experts, small firms are expected to be the most affected by US President Donald Trump’s policy shift, and consumers should prepare for fewer alternatives and increased costs, at least until the fallout is resolved.
The Latin phrase “de minimis” means “about the smallest things” in general and is frequently used in legal contexts to refer to issues that are too small to be of concern. To save money by not collecting minor amounts of import tariffs in the United States, the de minimis exemption was established in 1938.
As the threshold for the regulation increased over time, international shops and e-commerce companies that ship tiny goods to the US were able to prosper. Companies like Chinese e-commerce behemoths Shein and Temu, which provided Americans with inexpensive items that could be shipped directly from the production source without the need for warehouse stock or related administrative expenses, were frequently linked to the exemption.
Also Read:
Glodi Ntoya’s Journey to Building an International Business
Delivering Sustainable and Innovative Solutions across Industries with Synergy: Safeen Raouf
