US Ends Small Package Tariff Exemption in New Trade Risk

Trade Policy Change - The end of the de minimis exemption introduces friction into the US trade system, causing confusion due to reciprocal and sectoral tariffs [1] - Countries may halt small parcel shipments until paperwork and fee structures are clarified, leading to initial confusion [2] - Bipartisan support exists for clamping down on de minimis exemptions, as large companies could exploit the $800 threshold to avoid fees [2] - The EU, the UK, and others may consider similar measures to generate revenue [3] Economic Impact - Parcel slowdowns from countries like China are anticipated, impacting businesses, especially small businesses that rely on these shipments for revenue [4] - Significant disruption to the US economy and trade is expected, with potential consequences for various businesses [4]