A new policy that imposes tariffs on small-value packages entering the U.S. took effect at 12:01 a.m. Friday. Packages valued under $800 are now subject to additional taxes, following the end of a loophole that previously exempted them. This change was announced earlier this year by President Donald Trump, who aimed to address trade imbalances and combat the importation of illegal goods, including fentanyl.

Senior White House officials praised the decision, calling it a significant step in rebalancing trade. Peter Navarro, a senior counselor to the president for trade and manufacturing, stated that ending the "deadly de minimis loophole" could generate up to $10 billion in tariff revenues. He emphasized that the policy would help "save thousands of American lives by restricting the flow of narcotics and other dangerous and prohibited items."

Under the new rules, small packages entering the U.S. will incur 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 about the logistics of implementing this 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 asked about potential disruptions for consumers, a senior administration official reassured that shipping companies worldwide had been given sufficient notice of the policy change. The official noted that small packages have increasingly become "really deadly smuggling devices."

Data shows that a significant portion of goods seized for violations of intellectual property or health and safety regulations, including shipped weapons parts, 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.