US Ends Tariff Exemption for Low-Value Packages, Facing Minor Issues and Rising Costs Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Source: Reuters
U.S. Tariff Exemption Changes
- End of De Minimis Exemption: The U.S. has ended tariff exemptions for parcel imports, requiring normal duty rates on all package shipments valued under $800. This change is expected to increase costs for consumers and small businesses using e-commerce platforms.
- New Duty Rates: Importers can choose to pay a flat-rate duty ranging from $80 to $200 per package for the first six months, depending on the country of origin and the applicable tariff rates.
Impact on E-commerce and Trade
- Revenue Projections: The Trump administration estimates that the new duty requirements could generate an additional $10 billion in customs revenue annually.
- Surge in Package Claims: The number of packages claiming the de minimis exemption has increased nearly tenfold, from 139 million in fiscal 2015 to an anticipated 1.36 billion in fiscal 2024, averaging about 4 million per day.
Industry Reactions
- Support from Textile Organizations: The National Coalition of Textile Organizations has praised the move as a significant victory for U.S. manufacturing, as it closes a loophole that allowed foreign firms to avoid tariffs and potentially exploit labor practices.
- Logistics Preparedness: The U.S. Customs and Border Protection agency has indicated readiness to enforce the new duties, with logistics providers like FedEx and UPS having already adapted to previous changes.
Economic Implications
- Price Increases Expected: Analysts predict that the end of the de minimis exemption will likely lead to higher prices for goods sold through e-commerce, leveling the playing field with larger retailers like Walmart.
- Impact on Small Businesses: The new duties may hinder trade on peer-to-peer platforms such as eBay and Etsy, affecting small businesses that rely on these channels for selling secondhand or handmade items.
Customs Revenue Collection
- Duties Collected Since May: Since the elimination of exemptions for packages from China and Hong Kong on May 2, the customs agency has collected over $492 million in additional duties.
- Flat Tax Options for Foreign Postal Agencies: Foreign postal services can choose to collect duties based on package value or a flat tax determined by the tariff rate of the country of origin, with specific rates outlined for different countries.
Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WMT is 125.75 USD with a low forecast of 119.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 117.830
Low
119.00
Averages
125.75
High
136.00
Current: 117.830
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.








