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Tariff exemption rollback affects online shopping and international shipping

Tariff exemption rollback affects online shopping and international shipping
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Updated: 4:32 PM CDT Aug 29, 2025
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Tariff exemption rollback affects online shopping and international shipping
vlog logo
Updated: 4:32 PM CDT Aug 29, 2025
Editorial Standards
The Trump administration has reversed a tariff loophole that allowed goods valued at less than $800 to enter the United States duty-free, leading to increased costs for online shoppers and potential delays in package deliveries.National postal services from at least 25 countries, including Mexico, Japan, Thailand, and nearly every European nation, temporarily suspended sending packages to the U.S. due to uncertainty in handling the rollback of the "de minimis" exemption. Carriers will now face a flat fee or the U.S. tariff rate based on their country, and products will undergo inspections by border agents. The administration stated that criminals exploited the rule to send drugs and counterfeit products, but there are practical concerns regarding the implementation of these inspections."It requires a lot of manpower to be able to inspect these packages, about 1 billion packages a year that we're entering under the de minimis rule. It's not clear that we actually have the people to do that," said Adam Hersh from the Economic Policy Institute.Several small businesses that rely on this exemption for low-cost goods have expressed concerns about having to raise prices. A new inflation report indicates that prices rose 2.6% from a year ago, holding steady compared to last month, but "core" inflation ticked up to 2.9%, the highest since February. Experts suggest that tariffs are contributing to price increases in goods such as cars and appliances, potentially leading to more price pressure in the coming months.The U.S. Treasury reports that the country has collected over $30 billion in tariff revenue this month, surpassing records set in July and June.Follow along with the Washington News Bureau:

The Trump administration has reversed a tariff loophole that allowed goods valued at less than $800 to enter the United States duty-free, leading to increased costs for online shoppers and potential delays in package deliveries.

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from at least 25 countries, including Mexico, Japan, Thailand, and nearly every European nation, temporarily suspended sending packages to the U.S. due to uncertainty in handling the rollback of the "de minimis" exemption.

Carriers will now face a flat fee or the U.S. tariff rate based on their country, and products will undergo inspections by border agents.

The administration stated that criminals exploited the rule to send drugs and counterfeit products, but there are practical concerns regarding the implementation of these inspections.

"It requires a lot of manpower to be able to inspect these packages, about 1 billion packages a year that we're entering under the de minimis rule. It's not clear that we actually have the people to do that," said Adam Hersh from the

Several small businesses that rely on this exemption for low-cost goods have expressed concerns about having to raise prices.

A indicates that prices rose 2.6% from a year ago, holding steady compared to last month, but "core" inflation ticked up to 2.9%, the highest since February. Experts suggest that tariffs are contributing to price increases in goods such as cars and appliances, potentially leading to more price pressure in the coming months.

The U.S. Treasury reports that the country has collected over $30 billion in this month, surpassing records set in July and June.

Follow along with the Washington News Bureau: