US Ends De Minimis: 1.3 Billion Packages No Longer Duty-Free 📦

TRADE NEWS

US Kills Duty-Free Imports, Targets India,Brazil and Seals EU Deal

It’s been a massive week for global trade policy, with the U.S. government locking in a controversial trade deal with the EU, announcing steep new tariffs on India, Brazil, and officially ending the long-standing de minimis rule that allowed low-value imports to enter duty-free.

📦 De Minimis Ends — Duties for All

Starting August 29, the U.S. will remove its de minimis exemption for low-value goods entering the country via private carriers. This exemption previously allowed packages valued under USD $800 to skip customs duties — a loophole widely used by e-commerce giants and foreign suppliers. Under the new rules, even small personal purchases shipped by companies like FedEx or UPS will attract full import tariffs. Postal shipments will temporarily face fixed fees per item before moving to percentage-based tariffs by early 2026. This move is expected to impact consumer prices and cross-border supply chains, especially for fast-moving consumer goods and online retail.

🇮🇳 25% Tariff Hits Indian Exports

The U.S. has also introduced a fresh 25% tariff on Indian goods, citing trade imbalances and India’s continued purchases of Russian oil. While the specific products affected are still being detailed, the tariff adds new pressure on Indian exporters already grappling with global supply chain disruptions. Politically, the move has sparked debate within India, with critics calling it a failure of strategic diplomacy.

🇧🇷 Brazil Faces 50% Tariff Hike

In a parallel move, Brazil has been hit with a significant 50% tariff on a wide range of exports to the U.S. The action is part of a broader crackdown on countries perceived to benefit from what Washington calls “imbalanced trade practices.” Brazilian sectors likely to feel the impact include agriculture, mining, and manufactured goods. With no negotiated deal in place, exporters are bracing for reduced U.S. demand and potential knock-on effects throughout Latin American supply chains.

🇪🇺 EU Trade Deal Stirs Backlash

In a separate development, a long-negotiated deal between the U.S. and European Union was finalized, imposing a 15% tariff on most EU exports to the U.S. Although the rate is lower than early proposals, many EU leaders have expressed frustration, arguing that the deal disproportionately benefits American industries at the expense of European farmers and manufacturers.

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