End of low-cost tariff exemption in U.S.
The end of the “de minimis” tariff exemption for low-cost goods under a value of $800 raises online prices for U.S. consumers and leads many countries to suspend postal services to the U.S.
“DE MINIMIS” TARIFF-FREE IMPORTS WORLDWIDE
No exemption
$0-24
$25-99
$100-199
$200-499
$500-999
$1000
Package deliveries to U.S. suspended
22 EU countries
UK
Norway
Japan
S. Korea
U.S. 2024: 1.4 billion packages worth over $64bn entered tariff-free
Canada
CAD$20. Up to CAD$150 from U.S., Mexico
China
$7 exemption for personal consumption
UK
£135
EU
€150
Mexico
$1,000
Uzbekistan
$1,000
Japan
¥10,000 ($65)
Australia
AUD$1,000 ($650)
Taiwan
Singapore
Australia
New Zealand
U.S. DEPENDENCE ON DE MINIMIS
De minimis shipments to:
Poorest zip codes
75%
Wealthiest zip codes
52%
Exemption ended May 2 for China. Online retailers Shein, Temu have increased prices on average 20%
Sources: Bloomberg, Zonos, The Guardian
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