Catching Up: New Tariffs, the De Minimis Exemption Ends, and Shipments to the U.S. Suspended
Republican lawmakers are privately expressing concerns about the tariffs' economic impact while publicly aligning with the administration.
Photo: Fabian Bimmer/Reuters
Overview
Date: August 19-14 2025, with references to earlier events in the year.
Topic: The Impact of New U.S. Tariffs and the End of the De Minimis Exemption on International Trade and Shipping.
Summary: The U.S. government has expanded its tariff policies, imposing a 50% tariff on hundreds of “derivative” steel and aluminum products and ending the “de minimis” exemption that allowed goods valued under $800 to enter duty-free. This global policy shift, effective late August 2025, aims to curb illicit trade and duty circumvention. However, it has caused widespread confusion, leading international postal services and major couriers like DHL to temporarily suspend commercial shipments to the U.S.
Sources
NBC News - Global mail carriers suspend U.S. deliveries amid confusion over new duties
The Washington Post - Countries are suspending postal deliveries to the U.S. Here’s why.
The Wall Street Journal - U.S. Foreign Trade Zones Draw New Demand as De Minimis Ends
The Wall Street Journal - How GOP Lawmakers Are Privately Distancing Themselves From Trump’s Tariffs
The New York Times - Fearing Customs Chaos, DHL Joins Others in Suspending U.S. Shipments
Key Points
The U.S. government is implementing new and expanded tariffs, including a 50% tariff on hundreds of “derivative” steel and aluminum products, effective August 25, 2025.
The global elimination of the “de minimis” exemption, which previously allowed goods valued at $800 or less to enter the U.S. duty-free, is effective August 29, 2025.
The White House justifies the end of the de minimis exemption by citing a need to combat “deceptive shipping practices, illegal material, and duty circumvention,” including the alleged influx of illicit drugs like fentanyl, and the exploitation of the loophole by fast-fashion retailers.
The abrupt end of the de minimis exemption has caused widespread confusion and concern among international postal services and major courier companies like DHL, leading many to temporarily suspend commercial shipments to the U.S. due to a lack of clear procedures and unresolved questions regarding duty collection and data transmission.
Businesses, particularly e-commerce brands, are exploring alternative strategies such as utilizing U.S. Foreign Trade Zones (FTZs) to defer tariff payments and manage inventory in response to the new regulations.
The expanded tariffs are expected to increase production costs across various manufacturing sectors and impact supply chains.
Republican lawmakers are facing internal conflict, privately acknowledging the negative economic impact of the tariffs on businesses in their states but largely refraining from public opposition or legislative action against the administration’s policies.
Unique Highlights
CNN specifies that 407 categories of goods are subject to the 50% tariff on “derivative” steel and aluminum products and mentions a similar 50% tariff recently took effect on copper-based goods.
NBC News highlights that the number of de minimis parcels jumped from 134 million in 2015 to over 1.36 billion in 2024, explicitly linking the White House’s justification to allegedly combating fentanyl.
The Washington Post details the historical context of the de minimis exemption, noting it was passed in the 1930s and raised from $200 to $800 under the Obama administration, and provides a specific breakdown of new duty rates ($80, $160, or $200) based on the country of origin’s tariff rate.
The Wall Street Journal (U.S. Foreign Trade Zones Draw New Demand as De Minimis Ends) focuses entirely on Foreign Trade Zones (FTZs) as a business solution, providing historical context for their creation in 1934 and detailing their operational benefits, such as indefinite storage and weekly duty filings, as an alternative to bonded warehouses.
The Wall Street Journal (How GOP Lawmakers Are Privately Distancing Themselves From Trump’s Tariffs) offers a unique political perspective, illustrating through specific examples involving Utah lawmakers (Sen. John Curtis, Rep. Celeste Maloy, Rep. Blake Moore) how Republican officials privately express concerns about tariffs to business leaders but vote or act differently under pressure from party leadership.
The New York Times states that over four million small packages, averaging just over $50 in value, were imported daily to the U.S. tax-free via the de minimis loophole, predominantly from China, and cites an expert who believes the temporary halt by carriers will last “a matter of months.”
Contrasting Details
While multiple articles (NBC News, Fox Business, The Washington Post, The New York Times) report on DHL suspending shipments, The Washington Post specifically notes that DHL Express shipments from Germany are not affected by the suspension, while other DHL services are.
The Wall Street Journal (How GOP Lawmakers Are Privately Distancing Themselves From Trump’s Tariffs) highlights a discrepancy between statements made by Republican lawmakers and their public actions. For instance, Sen. John Curtis’s chief of staff indicated he would support a resolution to end emergency tariff authority, and Curtis himself said he would consider such measures, but he ultimately cast a decisive vote against it. Similarly, Rep. Celeste Maloy’s spokesperson clarified that she was “praying every day for it [Trump’s trade strategy] to succeed,” contrasting with initial interpretations by business leaders that she prayed for the turmoil to subside.
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