The Donald Trump administration’s policy of imposing tariffs on small parcels entering the United States without exception went into effect on the 29th. A senior Trump administration official stated in a briefing on the 28th that the elimination of the “small parcel duty-free” system would be permanent and that no exceptions would be granted to any country. The United States previously operated a system that exempted tariffs on products imported by individuals with a daily value of less than $800. However, there have been calls for reform as concerns grow that countries like China are abusing this system to circumvent U.S. tariffs or smuggle in prohibited items such as drugs.
President Trump suspended duty-free shipping on small parcels sent from China and Hong Kong on May 2nd, and this measure took effect for all countries at 0:01 AM on the 29th.As a result, postal agencies around the world stopped sending mail and parcels destined for the United States, throwing the world into chaos.Many European countries, including Germany, Denmark, Sweden, Italy, France, and Belgium, stopped accepting US-bound parcels.
According to the Washington Post (WP), Mexico, India, and Thailand are also not accepting US-bound items at all, and South Korea, Singapore, and New Zealand have also halted most US-bound shipments. Starting at 0:01 AM Eastern Time (EDT) on the 29th, the U.S. Customs and Border Protection (CBP) began imposing tariffs on all imported goods entering the United States as international mail parcels, without exception. Accordingly, foreign postal service providers must formally declare parcels bound for the United States and collect fees based on the applicable tariff rate for goods from that country for the full amount, or include a flat tariff of $80 to $200 per parcel.
According to CBP guidelines announced on the 28th, the day before the small-value parcel tariff went into effect, parcels from countries where the Trump administration has set tariff rates below 16%, such as Korea, the United Kingdom, and the European Union (EU), will be subject to a flat tariff of $80 per parcel upon entry into the United States.
Parcels from countries with tariff rates exceeding 25%, such as China, Brazil, India, and Canada, will be subject to a flat tariff of $200 per parcel. This flat tariff per parcel system, which streamlines the customs duty payment process through formal customs clearance, is only available to foreign postal service providers and is limited in duration, with a six-month grace period.
Non-postal service providers such as UPS, FedEx, and DHL cannot utilize the flat tariff per parcel system and must formally apply the tariff rate and complete formal customs declarations.