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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Washington, D.C., August 26, 2025 — The United States will abolish its duty-free policy on small parcels valued at $800 or less (approx. KRW 1.116 million) beginning August 29, according to an executive order signed last month by President Donald Trump.
Under the new policy, goods entering the U.S. via international postal networks will be subject either to an ad valorem tariff based on the item’s value under the applicable country-of-origin tariff rate, or a flat specific tariff of $80–$200 per item.
For the first six months, parcel carriers will be allowed to choose between ad valorem duties and flat-rate tariffs, but after this transition period, only the ad valorem tariff system will apply.
Exceptions remain in place: U.S. travelers may still bring in up to $200 worth of personal items duty-free, and “genuine gifts” valued under $100 will continue to be exempt.
This follows the administration’s earlier move in May to revoke the duty-free exemption for small parcels imported from China and Hong Kong, imposing tariffs of up to 54%. The new measure extends the policy to all countries beginning August 29.
The Trump administration has argued that the small-parcel duty exemption created loopholes allowing foreign firms to bypass U.S. tariffs and was also being exploited for smuggling and illicit drug trafficking.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
