Trump Tariffs Leave Parcels Stranded: What It Means for Your Business and Trade in Oman
The US tariff exemption for package shipments valued under $800 officially ended at midnight on Friday, leading to increased costs and disruptions for e-commerce companies, small businesses utilizing online marketplaces, and consumers.
Starting Friday at 12:01 a.m., the US Customs and Border Protection (CBP) agency began applying standard duty rates on all global parcel imports, regardless of their value, country of origin, or mode of transportation. For six months, a flat-rate duty option between $80 and $200 will be available for packages sent through foreign postal agencies.
This policy change extends the Trump administration’s earlier repeal of the de minimis exemption for packages from China and Hong Kong, initially implemented in May to combat the influx of fentanyl and related precursor chemicals into the United States.
White House trade adviser Peter Navarro emphasized the significance of this update, stating, "President Trump’s termination of the deadly de minimis loophole will save thousands of American lives by restricting narcotics and other dangerous prohibited items, while adding up to $10 billion annually in tariff revenues to the US Treasury."
A senior administration official confirmed that this change is permanent and indicated that efforts to reinstate exemptions for trusted trading partner countries are “dead on arrival.”
The de minimis exemption, in place since 1938, began with a $5 threshold for gift imports and was raised from $200 to $800 in 2015 to support small businesses operating on e-commerce platforms. However, following tariff increases on Chinese goods during Trump’s first term, direct shipments from China surged, fostering a new direct-to-consumer model for companies like Shein and Temu.
The National Coalition of Textile Organizations praised the move as a “historic win” for US manufacturing, noting that it closes a loophole previously exploited by foreign fast-fashion companies to avoid tariffs and import goods potentially made with forced labor, thereby undermining American jobs. The coalition said, “The administration’s executive action closes this channel and delivers long overdue relief to the US textile industry and its workers.”
CBP data reveals that packages claiming the de minimis exemption surged nearly tenfold from 139 million in fiscal 2015 to 1.36 billion in fiscal 2024—averaging nearly 4 million packages per day.
Retail analysts predict that the end of the de minimis exemption will result in higher prices for many goods sold via e-commerce, as items that previously bypassed tariffs will now incur duties. This change could equalize costs between e-commerce firms and traditional retailers like Walmart, which typically import goods in bulk and are subject to tariffs. Additionally, it may reduce trade on peer-to-peer platforms such as eBay and Etsy, commonly used by small businesses to sell secondhand, vintage, or handmade items.
Since the removal of exemptions for packages from China and Hong Kong on May 2, CBP has collected over $492 million in additional duties, according to another Trump administration official.
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The permanent end of the US de minimis tariff exemption signals increased costs and tighter supply chains for e-commerce and small businesses globally, including those in Oman relying on US-bound shipments. For Omani exporters and entrepreneurs, this shift creates both a risk of higher export costs and an opportunity to explore diversified markets or value-added products to remain competitiveسرمایهگذاران هوشمند باید consider adapting to changing tariff landscapes by strengthening local supply chains and exploring alternative trade routes or partnerships beyond the US market.