A significant change in U.S. trade policy took effect at 12:01 a.m. Friday, as a loophole exempting small-value packages from tariffs has been eliminated. Now, packages valued under $800 shipped into the United States will incur additional taxes. This policy shift follows President Donald Trump's earlier decision to end the exemption for small packages coming from China and Hong Kong.

Senior White House officials praised the move, describing it as a vital step in rebalancing trade and combating the importation of illegal goods, including fentanyl. Peter Navarro, a senior counselor to the president for trade and manufacturing, stated that ending the so-called "deadly de minimis loophole" could generate up to $10 billion in tariff revenues. He emphasized that this change could help "save thousands of American lives by restricting the flow of narcotics and other dangerous and prohibited items."

Under the new policy, small packages entering the U.S. will be subject to tariffs based on their country of origin, known as the ad valorem rate. To facilitate a smooth transition, the administration has introduced a six-month option allowing shippers to pay a flat fee ranging from $80 to $200 per item, depending on the applicable tariff rate.

Despite concerns regarding the logistics of this policy change, the Trump administration has indicated that major shipping companies are prepared. UPS, FedEx, and DHL have all confirmed they will continue shipping to the U.S. after the expiration of the de minimis exemption. When questioned about potential disruptions for consumers, a senior administration official reassured that shipping companies worldwide had been given sufficient notice.

The official noted that small packages have increasingly become "really deadly smuggling devices." A significant portion of goods seized for violations related to intellectual property or health and safety, including parts for weapons, involve small-value packages. Navarro criticized foreign postal services for their inadequate policing of packages entering the U.S., stating they are "vastly underperforming" compared to express carriers like FedEx, UPS, and DHL.

Regarding staffing levels at U.S. Customs and Border Protection to manage the new policy, another senior administration official confirmed that officers are "ready" to handle the changes.