A cornerstone of the modern online shopping experience – the duty-free import exemption – has officially ended,marking⁤ a significant shift in ​the economics of cross-border e-commerce. The change, detailed in reporting by ‌ The Atlantic, closes a loophole that previously allowed packages ‍valued under‌ $800 to enter the United States without incurring tariffs.

This exemption, a‍ century-old practice, was ⁣dramatically altered in 2016 ⁢when⁢ the de minimis ⁣threshold was raised from $200.​ This increase facilitated millions of daily shipments directly from overseas sellers to American ⁤consumers, fueling the rapid growth of‌ platforms like ‍Shein and Temu, and impacting marketplace sellers on Amazon, Etsy, and eBay.

While China ‍lost access to the exemption earlier this year, the policy now extends to all countries.Import duties will now apply to all international packages, regardless of value, with tariffs potentially reaching as⁣ high as⁢ 50% depending on the country ⁢of origin. ⁣This impacts a ​wide range of ​goods, from relatively ​inexpensive items⁤ like a $30 specialty faucet part from Britain to handmade‌ crafts sourced from ​India.

The end of ‌this exemption fundamentally alters the business models built around direct⁢ shipping from manufacturing hubs in Asia ‍and‌ elsewhere over the past decade. Consumers can expect ⁢to see increased costs on imported goods as a result of these new tariffs.