Key Facts
• August 29, 2025: U.S. ends duty-free policy for international parcels.
• Previous exemption applied to imports under $800 (approx. $11,700).
• New tariffs range from $80–$200 (approx. $1,170–$2,940) per item.
• Exceptions include personal-use items and gifts.
• Only 5% of duty-free parcels arrived via postal networks; most used private couriers.
• Postal operators in Japan, France, Germany, and others halted U.S.-bound parcel services.
• UK’s Royal Mail paused shipments but introduced a new service for U.S. deliveries.
• Small businesses face challenges absorbing costs; some may increase prices.
• Cornell University’s Professor Li Chen warns of delays and price hikes for consumers.
• Large companies may adapt, but small businesses face severe impacts.
Summary
The U.S. government ended its duty-free policy for international parcels on August 29, 2025, citing misuse for tariff evasion and drug smuggling. Imports under $800 are now subject to tariffs of $80–$200 per item, with exceptions for personal-use items and gifts. This policy change has disrupted global postal services, with operators in countries like Japan and the UK halting U.S.-bound shipments. Small businesses, heavily reliant on international sales, are particularly affected, with many considering price increases to offset costs. Experts predict delays in customs processing and higher consumer prices. While large corporations may absorb the impact, small businesses face significant challenges adapting to the new system.
