Online retailers anticipate increased expenses because President Donald Trump declared an end to duty-free treatment for parcels valued under $800 starting August 29.
The new policy speeds up the planned 2027 change by imposing heavy tariffs on all international e-commerce packages including secondhand items from Etsy and eBay. Trump eliminated duty-free benefits for China and Hong Kong in May because he wanted to address fentanyl smuggling and unfair trade practices.
The new regulations will impose either an ad valorem duty equal to the standard tariff rate of the exporting nation or a temporary flat duty fee ranging from $80 to $200.
The price change will negatively affect U.S. small businesses because they depend on low-cost international shipping options. Etsy public policy chief Jeffrey Zubricki explained that numerous American sellers maintain their cross-border trade operations through the de minimis rules. During its latest earnings call eBay indicated that this change could negatively affect their revenue.
The exemption benefits American businesses by supporting artisan trade and consumer choice but critics argue it promotes counterfeit imports which harms domestic producers. The new rules create additional costs and complexity for millions of sellers which raises concerns about price increases and reduced access to niche products.
Small businesses face another challenge because Trump’s broad tariff system has become a key element of his economic plan.
