Global Trade Disrupted as US Abolishes $800 Tariff Exemption
International shipping companies across Europe are suspending deliveries to the United States. This drastic action comes in response to new customs regulations that eliminate the de minimis exemption for packages worth $800 or less, effective from August 29, 2025. The tariff exemption removal, a key part of President Trump’s trade policy aimed at reducing dependency on foreign goods, is compelling European postal services such as DHL, Austrian Post, and Swiss Post to halt shipments until new clearance procedures are established.
Small businesses are finding themselves in a scramble to adapt to these new regulations. UK jewelry maker, Shed Maid, announced it will close its US operations – which represent 50% of its orders. Similarly, Canadian business Abbott Atelier Jewelry has warned its customers of indefinite shipping pauses. Korean cosmetics brand Olive Young has also been impacted, and will now apply 15% duties to all US orders, regardless of the purchase amount.
The change is having a significant impact on major platforms including Amazon Haul, TikTok Shop, Etsy, and Shopify. Businesses operating on these platforms are facing charges ranging from $80 to $200 per item, depending on the country’s tariff rate. Brazil faces the highest tariff rate at 50%, while small businesses are estimating price increases of up to 50% for specialty products.
Source: CNN Economy