packages

US ends tariff exemption for delivery packages valued at $800 or less | International Trade News

The ‘de minimis’ import tax exemption helped fuel home delivery and the rise of e-commerce in the US.

The US has suspended tariff exemptions for small delivery packages valued at $800 or less, ending a loophole that allowed more than one billion packages to enter the US last year without customs duties.

The loophole is due to end on Friday in the US, followed by a six-month transition period to a new tariff regime.

More than 30 countries, including Australia, Germany, Japan and Mexico, have suspended or partially suspended package shipments to the US in advance of the cost change.

Postal unions around the world say more clarity is needed about how the tariff will be calculated before they resume shipments to the US.

Global logistics giant DHL said it would not ship standard business parcels to the US until “unresolved” questions are answered regarding “how and by whom customs duties will be collected in the future”, and “how the data transmission to the US Customs and Border Protection will be carried out”.

A White House fact sheet released on July 30 stated that tariff rates on small packages will be calculated in one of two ways starting August 29.

The first option sets a flat rate of $80 to $200 per item, depending on the country of origin. The second option is based on the value of the package and the “reciprocal” tariff rate set by the White House for individual countries.

The flat rate will only be available for the next six months, after which all small packages will be subject to a tariff of 10 to 40 percent for most countries.

The White House set its “reciprocal” tariff rates in July for most trade partners, although negotiations are ongoing with key trade partners Mexico and China.

The administration of President Donald Trump says that tariffs are necessary to lower the US trade deficit, while ending the “de minimis exemption” – which lets people off on paying import tax on small items – will help slow the movement of narcotics posted across borders.

The de minimis exemption has been in place since the 1930s, but it played a critical role in the US economy after it was raised from $200 to $800 in 2015. The exemption on import tax on items valued less than $800 helped pave the way for international e-commerce by letting retailers ship directly to the customer.

Over the past decade, the number of packages crossing the US border each year rose tenfold from 129 million to 1.36 billion, according to US customs data.

The exemption also previously allowed Chinese e-commerce giants like Shein and Temu to avoid paying tariffs set on Chinese goods during Trump’s first term in office.

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European postal services suspend shipment of packages to U.S. over import tariffs

The end of an exemption on tariff duties for low-value packages coming into the United States is causing multiple international postal services to pause shipping to the U.S. as they await more clarity on the rule.

The exemption, known as the “de minimis” exemption, allows packages worth less than $800 to come into the U.S. duty-free. A total of 1.36 billion packages were sent in 2024 under this exemption, for goods worth $64.6 billion, according to data from the U.S. Customs and Border Patrol Agency.

It is set to expire Friday. On Saturday, postal services around Europe announced that they are suspending the shipment of many packages to the United States amid confusion over new import duties.

Postal services in Germany, Denmark, Sweden and Italy said they will stop shipping most merchandise to the U.S. effective immediately. France and Austria will follow Monday.

The U.K.’s Royal Mail said it would halt shipments to the U.S. on Tuesday to allow time for those packages to arrive before duties kick in. Items originating in the U.K. worth over $100 — including gifts to friends and family — will incur a 10% duty, it said.

“Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out,” DHL, the largest shipping provider in Europe, said in a statement.

The company said that starting Saturday it “will no longer be able to accept and transport parcels and postal items containing goods from business customers destined for the U.S.”

A trade framework agreed on by the U.S. and the European Union last month set a 15% tariff on the vast majority of products shipped from the EU. Packages under $800 will now also be subject to the tariff.

The U.S. duty-free exemption for goods originating from China ended in May as part of the Trump administration’s efforts to curb American shoppers from ordering low-value Chinese goods. The exemption is being extended to shipments from around the world.

Many European postal services say they are pausing deliveries now because they cannot guarantee the goods will enter the U.S. before Aug. 29. They cite ambiguity about what kind of goods are covered by the new rules, and the lack of time to process their implications.

Postnord, the Nordic logistics company, and Italy’s postal service announced similar suspensions effective Saturday.

“In the absence of different instructions from US authorities … Poste Italiane will be forced, like other European postal operators, to temporarily suspend acceptance of all shipments containing goods destined for the United States, starting August 23. Mail shipments not containing merchandise will continue to be accepted,” Poste Italiane said in a statement Friday.

Shipping by services such as DHL Express remains possible, it added.

Bjorn Bergman, head of PostNord’s Group Brand and Communication, said the pause was “unfortunate but necessary to ensure full compliance of the newly implemented rules.”

In the Netherlands, PostNL spokesperson Wout Witteveen said the Trump administration is pressing ahead with the new duties despite U.S. authorities lacking a system to collect them. He said that PostNL is working closely with its U.S. counterparts to find a solution.

“If you have something to send to America, you should do it today,” Witteveen told the Associated Press.

Austrian Post, Austria’s leading logistics and postal service provider, stated that the last acceptance of commercial shipments to the U.S., including Puerto Rico, will take place Tuesday.

France’s national postal service, La Poste, said the U.S. did not provide full details or allow enough time for the French postal service to prepare for new customs procedures.

″Despite discussions with U.S. customs services, no time was provided to postal operators to re-organize and assure the necessary computer updates to conform to the new rules,″ it said in a statement.

PostEurop, an association of 51 European public postal operators, said that if no solution can be found by Aug. 29, all its members will probably follow suit.

Nellas and Anderson write for the Associated Press and reported from Athens and New York, respectively. AP writers Angela Charlton in Paris; Costas Kantouris in Thessaloniki, Greece; Stephanie Lichtenstein in Vienna; Brian Melley in London and Molly Quell in Amsterdam contributed to this report.

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Brazil plans aid packages for businesses impacted by Trump tariffs | Trade War News

The plan, called ‘Sovereign Brazil’, will include credit for businesses that rely on exports.

The Brazilian government has unveiled a plan to support local exporters impacted by the 50 percent tariff imposed by the United States.

Officials announced what has been dubbed “Sovereign Brazil”, a credit lifeline of 30 billion reais ($5.5bn) on Wednesday.

Brazil’s President Luiz Inacio Lula da Silva described the plan, which includes a bill to be sent to Congress, as a first step to help local exporters.

Congressional leaders attended Wednesday’s ceremony, a first in months, in a sign of growing political support for the leftist leader in response to US President Donald Trump’s tariffs.

 

Other measures announced by the Brazilian government include postponing tax charges for companies affected by US tariffs, providing 5 billion reais ($926,000) in tax credits to small and medium-sized companies until the end of 2026 and expanding access to insurance against cancelled orders. The plan also incentivises public purchases of items that could not be exported to the US.

The measures take effect immediately, but will only stay in place for four months unless Congressional leaders act.

“We cannot be scared, nervous and anxious when there is a crisis. A crisis is for us to create new things,” President Lula said. “In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist.”

The tariffs have drastically weighed on sectors across the South American nation, including the beef industry. In July, when Trump first announced the plan, Robert Perosa, president of industry trade group Brazilian Beef Exporters Associations (ABIEC), said that the tariffs would make it  “economically unfeasible” to continue to export to the US market.

Trump has directly tied the 50 percent tariff on many imported Brazilian goods to the judicial situation of his embattled ally, former Brazilian President Jair Bolsonaro, who is currently under house arrest.

In late July, the White House said that the order to impose this rate of tariffs is because of “the Government of Brazil’s politically motivated persecution, intimidation, harassment, censorship, and prosecution of former Brazilian President Jair Bolsonaro and thousands of his supporters are serious human rights abuses that have undermined the rule of law in Brazil”.

The former Brazilian leader is accused of trying to facilitate a coup after losing the election in 2022.

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Cruise passengers can currently get free drinks packages on over 40 sailings in 2025

Fred Olsen cruise line has launched a huge summer sale and Brits can currently get free drinks packages on a host of sailings in 2025 including Northern Lights cruises

Two women having a drink on a cruise ship deck
The deal is valid on over 40 sailings

Brits planning cruise holidays this year may want to check out Fred. Olsen’s latest summer sale, as the cruise line is currently offering a tempting deal with drinks.

Cruises already include plenty such as your food, accommodation and travel, but if you want drinks, these usually come at an extra cost on the majority of cruise lines. A drinks package can be a great way of being able to indulge in a tipple or two without having to worry about the size of your bill at the end of the holiday, but these also come at an extra cost.

However, Fred. Olsen is currently offering free drinks packages on over 40 sailings in 2025. That will include a range of house beers, spirits, wines and soft drinks too.

Holidaymakers who book by June 25, 2025, will be able to enjoy the free drinks, worth £24.99 per person per night (or if you’re booking five-night cruises, worth £35.99 per person, per night).

The three cruise ships Bolette, Balmoral and Borealis
The sale applies to over 40 sailings across its three ships

You can already book on the Fred Olsen website, and there’s an impressive array of itineraries included whether you’re hoping to make the most of the summer sun on a sailing to Spain, or have a bucket-list-worthy winter and go in search of the Northern Lights.

There’s more good news as the sailings are across all three of its ships – Bolette, Borealis and Balmoral – with a range of UK departure ports including Southampton, Dover, Portsmouth, Liverpool, Newcastle and Rosyth (Edinburgh).

Whatever cruise itinerary you’re eyeing up, according to one cruise insider there are six items you should always pack before heading to the ship. One top tip? Packing both a backpack for your onshore excursions, but also a smaller evening bag for around the ship so you can carry a few essentials whether heading to dinner, a show or even just enjoying a trip to the bar.

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A card holder is also another essential item, although if you book a package that includes your drinks, gratuities and service charges, then you may not need to think too much about additional costs throughout the holiday!

Meanwhile, sun-seeking Brits may want to keep an eye out for itineraries featuring Cartagena in Spain, after the beautiful city was named the sunniest in Europe. The historic port city, which is a popular stop for cruise ships, boasts a plethora of gorgeous architecture, as well as impressive museums and an eye-catching Roman amphitheatre. Unsurprisingly, it’s a firm favourite with history and culture fans as well the foodies who flock to the city to indulge in some of that mouthwatering Spanish food. (Tapas and wine, anyone?).

The cruise hotspot is underrated, with most tourists opting for the likes of Alicante or Murcia instead, so one of the benefits of visiting is that it doesn’t always have the huge crowds found in other spots in peak months (although on a shore day, you might find it a little busier because of the cruise crowds).

Do you have a travel story to share? Email us at [email protected].

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