LOUISVILLE, Ky. -- Americans are bracing for potential problems with incoming international shipments after the Trump administration ended a long-standing tax exemption.
That could mean tariff troubles for popular products from places like South Korea, India and Europe.
Dozens of government and privately-run international postal services are pausing shipments of low value packages because they will no longer be exempt from import taxes.
What is the "De Minimis" exemption?
It was an exemption that allowed packages worth less than $800 to come into the U.S. duty free. Data from the U.S. Customs and Border Patrol Agency states a total of 1.36 billion packages were sent in 2024 under that exemption for goods worth $64.6 billion.
President Trump signed the executive order doing away with the exemption in July and is set to expire Friday.
Major shipping companies like UPS, FedEx, DHL Express says their services will not experience any interruptions.
UPS released a statement to WHAS11 News, stating investments made in their brokerage technology and have provided "robust data elements" to the CBP for years.
"UPS serves customers around the world, and we have a flexible global network that is well-positioned to help our customers navigate shifts in global trade. Our priority is to help our customers minimize any disruption to business," UPS said.
UPS wants to ensure their international shipping is as straightforward as domestic and to save businesses time and money.
Full statement
"UPS has made investments in our brokerage technology and has provided robust data elements to CBP for many years. Our systems are well equipped to fully comply with the new rules. UPS helps businesses of every size navigate global trade by managing the complex process of customs clearance. We are one of the world's largest customs brokers, and our brokerage services are designed to ensure shipments comply with regulations, pay necessary duties and taxes, and avoid delays. UPS uses advanced technology to simplify paperwork, classify products correctly, and optimize costs. Our goal is to make international shipping as straightforward as domestic shipping, saving businesses time and money.