Mexico to suspend package shipments to US as tariff exemption set to expire

Before the end of the small-value package exemption, Mexico declares it will stop shipping packages to the United States.

As they await further information from the US government, postal services from several European nations, including Germany, Denmark, Sweden, Italy, and the United Kingdom, are following in the footsteps of the announcement on Wednesday.

Since 2016, packages valued at less than $800 have been allowed to enter the US tariff-free under the “de minimis” exemption, but Friday is the deadline to close the loophole.

The change is anticipated to hurt the business of Chinese e-commerce platforms like Shein and Temu, which have evaded US tariffs by mailing customers directly, and it has also stifled the confusion of other US trade partners. In the event that Washington provides more information about new duties, Mexico announced it would suspend shipments.

Mexico continues to work with US authorities and international post offices to develop policies that will ensure the smooth resumption of services, ensure users, and prevent setbacks in the delivery of goods, according to the government.

Important issues remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how data transmission to US Customs and Border Protection will be handled, according to shipping giant DHL.

As part of US President Donald Trump’s wider trade war, the White House announced plans to suspend the de minimis exemption for all nations starting on July 30.

Due to concerns about the flow of fentanyl and other drugs over the US border, the exemption was previously suspended for China, Hong Kong, Mexico, and Canada.

Two schemes may be used to calculate tariffs for small packages, according to a White House Fact Sheet released on July 30.

The first method calculates the package’s value, while the second method sets a tariff range of $80 to $200 per item.

Based on the Trump administration’s overall tariff schedule for the majority of its US trade partners in August, which ranges from 10% to 40%, are both rates.

Additionally, tariffs have been levied on a number of different industries, including automotive parts, automotive parts, and semiconductors.