The United States Government has closed a long-standing tariff exemption for cheap imports, regarded as the ‘ dinimis”
The development had sparked confusion among shoppers while supply chains also disrupted .
The exemption, which allowed packages valued under $800 to enter the US tariff-free, has been repealed.
President Donald Trump signed the documents in respect of the change, stating that the loophole allowed fentanyl smuggling and gave foreign businesses an unfair advantage over American companies. The exemption had already ended for small shipments from mainland China and Hong Kong in May, and the new rule extends this to goods from the rest of the world.
The change has caused chaos, with many foreign post offices suspending shipments to the US as they struggle to adapt to the new rules. Foreign businesses relying on postal networks are now facing uncertainty about their future.
Reacting, Senior Director of compliance at Flexport, a supply Chain Company, Ryan Tanner, said the impact on shoppers and businesses remains to be seen.
“It’s a stark shift from the way business has been done for quite a while,” said Ryan Tanner.
