Tariffs will also be imposed on “small parcels” under $800 that will be brought into the United States from the 29th of next month.
The White House released a fact sheet on the 30th local time that President Donald Trump signed an executive order saying, “Imports under $800 that do not use the international postal network are no longer tax-free.”
Goods brought in through the international postal network will be subject to a closing price tax proportional to the value of each parcel according to the effective tariff rate applied to the country of origin, or a specific tax that charges a flat rate of $80 to $200 per product according to the tariff rate of the country of origin. After six months, all goods will be subject to closing taxes.
However, U.S. travelers can bring in personal items up to $200 tax-free, and the existing exceptions that “true gifts” are tax-free up to $100 or less are maintained.
Earlier in May, President Trump suspended the duty-free benefits of small packages from China and Hong Kong and imposed a 54% tariff.
Because the majority of small packages coming into the United States came from these countries, and now it’s expanding to all countries.
The measure was scheduled to take effect on July 1, 2027, in President Trump’s large-scale tax cut and expenditure bill (aka “one big and beautiful bill”), which was promulgated by Congress earlier this month, but the White House explained that it has advanced the timing of its implementation to “save American lives and businesses right now.”
The Trump administration recognizes that drugs such as fentanyl, illegal weapons parts, and goods that violate intellectual property rights are coming in by exploiting the duty-free benefits of small packages. These packages are in a way that customs checks are flimsy than general imports.
As of fiscal 2024, 90% of the imported cargo seized was small parcels, according to a fact sheet released by the White House.
Among the seized items, 98% were small packages for drugs, 97% for intellectual property violations, and 77% for items prohibited from health and safety violations.
SAM KIM
US ASIA JOURNAL
