President Trump’s so-called ‘Liberation Day’ tariff measures, announced yesterday, went further than many experts had predicted, with some tariffs as high as 50% announced on goods arriving in the US.
The EU is being hit with a 20% tariff, while the UK is one of the countries that escapes with the (lowest) 10% basic tariff.
The good news is that Customs duties won’t immediately apply to goods arriving in the US valued at under $800 (around £608).
The notable exception to this is China and Hong Kong, which lose their de minimis exemption from 2 May.
This follows the first attempt to suspend the de minimis rule on Chinese packages back in February, which collapsed in chaos because US Customs and mail services were given insufficient time to implement the change.
However, the bad news is that this exemption for the rest of the world may not last long, fears the international delivery expert Parcelhero.
Parcelhero’s Head of Consumer Research, David Jinks, a Member of the Chartered Institute of Logistics and Transport, says: ‘It’s been submerged and the legalese is certainly difficult to interpret but it does appear from President Trump’s Executive Order introducing the new “reciprocal tariffs” that his intention is to end the de minimis duties exemption for all countries as soon as possible.
‘In effect, the Order seems to be saying the $800 duty-free de minimis treatment on packages arriving in the US will remain only until systems are in place to process and collect tariffs. At that point, the duty-free de minimis threshold will be axed for everyone.
‘Here’s the actual text for the brave-hearted: “Duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(A)-(B) shall remain available for the articles described in subsection (a) of this section. Duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall remain available for the articles described in subsection (a) of this section until notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect duty revenue applicable pursuant to this subsection for articles otherwise eligible for de minimis treatment. After such notification, duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) shall not be available for the articles described in subsection (a) of this section.”
‘What this appears to mean is that goods previously exempt from duties – except gifts and items personally brought into the US, referred to in the jargon as (A) and (B) – will be liable as soon as the ability to collect them is in place. That would imply low-value packages arriving into the USA from the UK would then be clobbered for Customs duties.
‘That’s my initial reading of this wording and one corroborated by a number of international shipping platforms and publications.
‘If this proves to be correct, it’s a measure that was not anticipated by most analysts and one that will particularly impact smaller UK sellers, retailers and manufacturers whose product shipments are typically valued at less than $800.
‘Whatever the outcome, we can expect some export and courier market volatility.
