The de minimis rule has allowed goods under $800 to enter the US duty-free since 2016

Postal services in Japan and Switzerland are the latest to suspend shipments to the US ahead of the August 29 end to the de minimis exemption, which has let goods under $800 enter duty-free since 2016.

President Donald Trump ended the tax loophole through an executive order last month. Under the new rule, letters and personal gifts under $100 remain exempt.

Without the exemption, an $800 item from China, Brazil, or Canada could now cost at least $200 more with a 25% tariff.

The looming cost rise has led to several carriers from the UK, France, Italy, Spain, India, Thailand, South Korea, Singapore, New Zealand, and Australia pausing their shipments. Many are worried the parcels won’t clear before the Friday deadline.

The uncertainty has caused shipping giants like DHL to halt US-bound parcels, while others, including FedEx, are scrambling to adapt.

It is not a small pause
The Customs and Border Protection says over 90% of cargo entering the US by volume qualified under the de minimis rule.

For shoppers, the change means higher prices and longer waits. It could mean 10% or more additional charges at checkout. Chinese fast-fashion giants, Shein and Temu, had already hiked prices after losing their exemption in May.

Critics say confusion over how tariffs will be collected could spark backlogs and closures for small sellers.

The White House says the change combats deceptive shipping and illicit imports like fentanyl.