US Ends Tax Exemption for Small Packages

The tax exemption for small packages entering the US has been abolished today. Now, with the exception of 'gifts' worth less than $100, packages are subject to the same duties as any other product.

The exemption previously allowed packages worth less than $800 to be sent without duties. However, then-President Donald Trump signed an order to abolish the exemption, citing the need to stop tariff avoidance and the shipment of dangerous goods.

According to CBP, 98% of narcotics and 97% of counterfeit goods seized in the US in 2024 were found in small packages. Duties now range from 10% to 50%, depending on the origin of the package.

The Universal Postal Union (UPU) announced that 25 countries have suspended parcel shipments to the US due to the unclear framework and the short timeframe given for implementing the measure.