US will permanently end the $800 tariff exemption on package shipments starting Friday, aiming to boost customs revenue and curb illegal goods like narcotics, Reuters reported.
A six-month transition allows postal services to charge a flat duty of $80–$200 per package based on the country of origin, with full value-based duties mandatory by February 28, 2026. The exemption, in place since 1938 and raised to $800 in 2015, had been heavily used for direct shipments from China and Hong Kong, which surged after earlier US tariff hikes.
US Customs and Border Protection reported that exempted packages grew from 139m in 2015 to 1.36bn in 2024. Express carriers like FedEx, UPS, and DHL will handle duties, while some foreign postal services have temporarily suspended shipments, though deliveries from Britain, Canada, and Ukraine continue, according to Reuters.
