U.S. suspends duty-free import rule on low-value goods

The White House has issued a new executive order suspending duty-free treatment for most low-value goods entering the United States, including those from Canada and Mexico, citing national security concerns linked to drug trafficking and unfair trade practices.

Effective August 29, shipments under US$800 — known as de minimis — will no longer be exempt from import duties unless sent via international mail. The change targets goods brought in through commercial carriers, such as couriers and freight firms, which will now be subject to regular customs processing and tariffs.

The Trump administration said the suspension is necessary to stop criminals from using small shipments to smuggle illicit drugs, including fentanyl and to crack down on deceptive shipping practices that obscure the origin and contents of packages.

The policy also applies to imports from China and Hong Kong and is part of a broader series of national emergencies declared earlier this year. Trump said the suspensions are independent but serve a common purpose: preventing bad actors from exploiting loopholes in the U.S. trade system.

Until U.S. Customs and Border Protection (CBP) develops new processing systems for mail, postal shipments will remain largely exempt from duties, except for a new fee structure based on the country of origin’s tariff rate.

Transportation carriers handling international mail must begin collecting and remitting those duties, ranging from US$80 to US$200 per package, depending on the source country’s tariff level.

CBP has also been authorized to require financial bonds from importers and carriers to ensure compliance.