-
Tech names drag down world stocks, oil dips on supply hopes
-
Starmer vows 'orderly' transition as Labour MPs mull bid to be PM
-
Reports of Dupont inclusion in France squad 'bordering on annoying' says Galthie
-
ACTIVIST SHAREHOLDER FILES SCHEDULE 13D IN EQUUS TOTAL RETURN, INC.
-
England coach McCullum denies rift with 'good friend' Stokes
-
Europe: the world's fastest-warming continent
-
Taliban officials hold EU migration talks in Brussels
-
Gennaro Gattuso returns to coaching with Lazio after Italy debacle
-
Kenya halts US Ebola facility: health minister tells court
-
Why the heat is wreaking havoc on Europe's trains
-
Zelensky to skip key Ukraine conference in Poland over WWII row
-
Seoul leads rout for tech shares as oil prices dip
-
Europe heatwave closes schools, threatens health
-
India monsoon sweeps north but brings less rain than usual
-
Germany eyes longer working lives in pension reform plan
-
UK and markets await Burnham's economic plans
-
Iran says won't allow UN inspectors at bombed nuclear sites
-
Heineken names new CEO after predecessor's shock departure
-
Banned Vondrousova insists she has 'never doped'
-
Schools plan to close as UK braces for record-breaking heatwave
-
UN chief urges AI firms to 'come clean' over environmental footprint
-
India startup head Kunal Shah appointed as new WhatsApp boss
-
More records set to fall as deadly Europe heatwave drags on
-
Israel's 'deliberate targeting' of children part of ongoing Gaza 'genocide': UN probe
-
England, Ghana eye last 32 as Portugal look for lift-off
-
Seoul's Kospi stock index tanks 10% to lead tech-fuelled Asia rout
-
Sri Lanka troops to battle deadly dengue mosquitoes as cases rise
-
Iran says to oversee Hormuz as Swiss talks conclude
-
Diaspora World Cup champions diversity over division
-
Guns, drones and doves: War reshapes Ukrainian jewellery scene
-
Australia withholds Pacific climate fund reports over risk of diplomatic 'damage'
-
Kenya police violence victims say compensation promise a 'smokescreen'
-
Indian startup head appointed as new WhatsApp boss
-
EU bets on digital euro to cut US tech addiction
-
Antetokounmpo joining Miami Heat in blockbuster: reports
-
Fineanganofo rethinks Newcastle move after All Blacks call-up
-
'Let's be realistic': Haaland cools Norway's World Cup expectations
-
Stocks fluctuate after Wall St sell-off, crude holds losses on peace talks
-
Lightning, downpour, a two-hour delay: bad weather hits the World Cup
-
Ultra-reclusive Turkmenistan slowly opens up to tourists
-
Two-goal Haaland fires Norway into World Cup last 32
-
Marc Bloch, historian and Resistance hero, joins France's Pantheon greats
-
Last one the best one? How Messi keeps doing it at World Cup
-
Ronaldo 'a role model' says Portugal coach after slow World Cup start
-
Savea 'embraces challenge' of leading All Blacks towards World Cup
-
North Korea's Kim vows to accelerate military buildup
-
Savea 'embraces challlenge' of leading All Blacks towards World Cup
-
Latin America's resurgent right notches another win in Colombia
-
Mbappe scores twice as France beat Iraq at World Cup after two-hour storm delay
-
Trump threatens prison for damage to Washington Reflecting Pool
US ends tariff exemption for small packages shipped globally
The United States on Friday ended tariff exemptions on small packages entering the country from abroad, in a move that has sparked concern among small businesses and warnings of consumer price hikes.
President Donald Trump's administration cited the use of low-value shipments to evade tariffs and smuggle drugs in ending duty-free treatment for parcels valued at or under $800.
Instead, packages will either be subject to the tariff level applicable to their country of origin, or face a specific duty ranging from $80 to $200 per item. But exclusions for personal some personal items and gifts remain.
Trump's trade adviser Peter Navarro told reporters that closing this "loophole" helps restrict the flow of "narcotics and other dangerous and prohibited items" while bringing fresh tariff revenues.
But the monthlong lead time Trump's order provided has sparked a frenzy.
Postal services, including in France, Germany, Italy, India, Australia and Japan, earlier said most US-bound packages would no longer be accepted.
The UK's Royal Mail, which took a similar step, announced new services Thursday for customers to continue sending goods to the United States.
On Tuesday, the United Nations' Universal Postal Union said 25 member countries' postal operators had suspended outbound postal services to the country.
"Foreign post offices need to get their act together when it comes to monitoring and policing the use of international mail for smuggling and tariff evasion purposes," Navarro added Thursday.
US officials maintain that just five percent of duty-free small package shipments arrived via the postal network, while most went through express couriers.
Yet, the impending change has brought confusion and concern to small businesses.
- Delays, cost hikes -
UK retailer Liz Nieburg told AFP she had stopped shipping products to US customers while the Royal Mail worked out a system to honor the changes.
US buyers form about 20 percent of sales at her online business SocksFox, which sells socks, undergarments and sleepwear.
She sees little choice but to hike prices if new duties are here to stay: "Our margins are too tight to be able to absorb that."
The Trump administration has imposed tariffs in rapid succession this year.
Cornell University professor Li Chen warned that it takes time for postal services to establish systems for duty collection: "It's not like there's a switch you can turn on and turn off."
"On the consumer side, there will be potential delays, because now all the parcels have to clear customs," Chen added. Prices may also rise if businesses pass on the tariffs.
He expects the impact on small businesses to be "much greater," as larger firms can absorb shocks.
These include businesses like Chinese-founded consumer platforms Shein and Temu, which were hit when Washington ended the exemption for China-origin products this year.
They might have to raise costs, Chen said, but they are not fully dependent on US consumers.
Ken Huening, whose California-based business CoverSeal manufactures outdoor protective covers in China and Mexico, has had to eliminate free shipping for customers.
While he had benefited from the duty-free exemption, the hit to China and now Mexico is posing challenges.
"Textile and manufacturing is not available in the US currently," Huening said. "It might be in the future, but by that time, we're all out of business."
- Confusion -
"It's a super confusing time for our customers," said Haley Massicotte, who runs Canada-based cleaning products company Oak & Willow.
She said US consumers do not always understand how tariffs work, and how they might have to bear added costs.
"We are going to do everything in our power to not raise prices," she stressed.
Similarly, ceramics retailer Sarah Louise Jour in Bangkok is trying to keep shipping costs down after facing issues with Thailand's postal service.
This forced her to tap more expensive services for shipments to US buyers, constituting some 90 percent of her business.
"I don't have time to worry, because I have to think about my team," she said. "I have rent I need to pay for the office."
While she expects sales to hold up over the holidays, the outlook is murkier afterwards.
Massicotte said: "This tariff war is just going to hurt the American and the Canadian consumer, especially small business owners."
S.Spengler--VB