The Era of U.S. Cross-Border Small Parcel Duty-Free Ends

Trump Issues New Tariff on Small Parcels, Rising to as High as 200 USD

As the year-end peak season approaches, cross-border sellers are stocking up, breaking down hot products, all in order to seize the initiative for Black Friday and Cyber Monday. However, before the trumpet of the peak season has even sounded, U.S. tariffs have already thrown a wrench in the works.

Recently, U.S. President Trump issued an executive order, officially announcing the termination of the “de minimis exemption” policy for all countries. Small parcels valued at less than 800 USD entering the U.S. will no longer enjoy duty-free privileges, and will instead face the full customs inspection and taxation process.

This means that the more than 4 million small parcels crossing the seas into the U.S. every day are officially bidding farewell to nearly 90 years of tariff exemptions. In an instant, millions of American “overseas shoppers” received an extra bill, and U.S. businesses of all sizes relying on global supply chains are now on edge.

Transition Period and Fixed Tariff Structure

Specifically, guidance issued by U.S. Customs and Border Protection points out that the new tax regime will set up a six-month transition period until February 28, 2026. Before February 28, 2026, postal carriers are allowed, based on the tariff level of the parcel’s country of origin, to choose to pay a tiered “fixed tariff” of 80–200 USD per parcel.

• For countries such as the UK and EU, where Trump set tariff rates below 16%, the fixed fee per parcel will be 80 USD.
• For countries such as Mexico and Vietnam, where tariff rates are between 16% and 25%, parcels exported to the U.S. will be subject to a fixed rate of 160 USD each.
• The highest tier of fixed tariff is 200 USD per parcel, targeting countries such as China, Canada, Brazil, and India, where tariff rates exceed 25%.

U.S. customs officials also pointed out that after the six-month transition period, that is, after February 28, 2026, all postal agencies must fully shift to levying “ad valorem tax” on parcels, that is, taxation based on the value of goods.

Official Justifications vs. Market Concerns

In this regard, Trump stated that suspending the de minimis exemption measure will help the U.S. reduce its trade deficit. Trump’s trade advisor Navarro believes that this move will increase U.S. Treasury revenue by 10 billion USD annually.

However, the grandiose rhetoric of White House officials cannot conceal the economic burden that the new tariff regime brings to U.S. businesses and consumers.

Trade expert Deborah Elms said that small companies in particular will feel the pressure of the expensive audits required for U.S. customs clearance, making it difficult for sellers to maintain price stability. Theobalds, the owner of a New York shop specializing in handmade women’s shoes, admitted that low-cost entry points no longer exist, and she does not know how to explain the changes in product prices to her customers.

Recommendation

In the face of new tariff policies and stricter customs procedures, cross-border sellers will need more reliable tools to manage compliance, logistics, and financial reconciliation. This is where Windingflow provides value.

Windingflow helps e-commerce businesses:

• Automate customs and compliance reporting to reduce risks of penalties.
• Streamline cross-border order processing with greater efficiency.
• Centralize financial reconciliation across multiple platforms and markets.

With Windingflow, sellers can respond faster to regulatory changes, protect margins, and focus on sustainable global growth, even in a more complex trade environment.

📩Get in touch with our team today to discover how Windingflow can help you