Did your recent online shopping spree involve international parcels? Brace yourselves! The U.S. just scrapped its $800 duty-free import rule, meaning those bargain finds might now come with an extra customs fee. Small businesses and everyday shoppers are feeling the pinch. Will this policy truly reshape global trade, or just your shopping cart?

The United States has enacted a significant shift in its US trade policy, eliminating the long-standing “de minimis” rule that allowed low-value international shipments, specifically those under $800, to enter the country duty-free. This move, which took effect recently, marks a pivotal moment in the nation’s approach to global trade, introducing new import tariffs for millions of parcels previously exempt.

Initiated under the Trump administration’s broader agenda to reconfigure international commerce and reduce reliance on foreign goods, this policy change aims to level the playing field for domestic industries. Proponents argue that the “de minimis” rule had evolved into a substantial loophole, exploited by foreign businesses to circumvent tariffs and, in some cases, by criminals to smuggle illicit goods and counterfeit products into the U.S.

The immediate consequence for consumers and small businesses is the introduction of new costs and potential logistical delays. Shipments that once sailed through customs without inspection now face scrutiny and the application of origin country-specific customs duties. While temporary flat duties are in place for postal network parcels, a value-based tariff system will eventually apply universally, highlighting the small business impact.

The “de minimis” exemption, Latin for “lacking significance,” originated in 1938 with a mere $1 threshold, designed to spare the federal government the administrative burden of collecting duties on negligible imports. Over the decades, this limit saw several increases, peaking at $800 in 2015, leading to an explosion in its utilization for international shipments.

Data from the U.S. Customs and Border Protection agency highlights the dramatic surge, with 1.36 billion packages claiming de minimis treatment last year, valued at $64.6 billion, a stark contrast to the 134 million packages recorded in 2015. This exponential growth fueled arguments that the rule was being abused, particularly by large, China-founded e-commerce platforms.

While organizations like the National Council of Textile Organizations lauded the policy shift as a crucial step to curb “cheap, subsidized, and often illegal, toxic and unethical imports,” not all reactions were positive. Many smaller American enterprises, which rely on the import of specialized products and materials, had benefited significantly from the exemption, now facing increased operational expenses.

The personal accounts of business owners like Kristin Trainor, who sources over 70% of her boutique’s inventory from European fashion houses, underscore the tangible impact. Similarly, Shannen Knight, who imports unique sports eyewear, anticipates direct challenges from the new customs duties on her international shipments.

This policy puts the U.S. more in line with other nations, many of which maintain significantly lower de minimis thresholds, such as 150 euros in the EU or 135 pounds in the U.K. While trade agreements might offer some relief for specific regions like Mexico and Canada, the withdrawal of the de minimis rule applies broadly, reshaping the landscape of international e-commerce and cross-border transactions for the foreseeable future, influencing the global economy.