*

Trump orders end of duty-free treatment for parcels under

$800

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Change includes imports from all countries, starting

August 29

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Move is designed to tackle flood of cheap imports into US

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Peer-to-peer platforms say Americans will lose choice and

pay

more

LONDON/NEW YORK, July 31 (Reuters) - Americans shopping

for secondhand, vintage or handmade items on platforms like eBay ( EBAY )

and Etsy ( ETSY ) face steep customs duties on

international purchases next month, potentially hurting trade on

those peer-to-peer sites.

In a surprise move late on Wednesday, U.S. President Donald

Trump ordered the removal of "de minimis" duty-free treatment on

parcels under $800 from all countries, starting August 29 -

bringing forward a change previously set for July 2027.

The acceleration follows pressure from groups that argue the

exemption facilitates fentanyl smuggling and has led to a flood

of cheap products entering the U.S. duty-free, undermining U.S.

retailers and manufacturers.

Trump ended duty-free access for low-value parcels from

China and Hong Kong at the start of May, disrupting ecommerce

flows for online retailers like Shein and Temu.

After asking for feedback on widening the removal of de

minimis, some U.S. businesses had spoken out against the policy.

"These exemptions are a powerful tool that helps small

creators, artisans, and makers participate in and navigate

cross-border trade," Etsy's ( ETSY ) global head of public policy and

advocacy Jeffrey Zubricki wrote in a submission to Customs and

Border Protection in March.

"Many American Etsy sellers rely on de minimis to import and

export products with key trading partners, sustaining their

businesses and generating income to support their families."

The majority of Etsy's ( ETSY ) 5.6 million active sellers and nearly

90 million buyers are in the U.S. Etsy ( ETSY ) did not immediately

respond to a request for comment on Thursday.

eBay ( EBAY ) also urged the customs agency to reconsider, arguing

that de minimis gives American consumers access to "a global

market to find value at lower prices, particularly for used

goods and a unique, collectible inventory that is not available

domestically".

In a results call on Wednesday, eBay ( EBAY ) CEO Jamie Iannone

flagged the elimination of de minimis outside of China as a

potential disruption that may impact revenue. eBay ( EBAY ) did not

immediately respond to a request for comment.

Goods shipped through the postal system will face one of two

tariffs: either an "ad valorem duty" equal to the effective

tariff rate of the package's country of origin or, for six

months, a specific tariff of $80 to $200 depending on the

country of origin's tariff rate.

It is the latest headache for small businesses grappling

with hefty import tariffs imposed by Trump, driving up costs,

forcing many to hike prices and fuelling concerns that Americans

will be paying more for everyday goods.

"The complexity of doing business with the U.S. has gone to

levels nobody could have imagined," said Andrew Wilson, deputy

secretary general of the International Chamber of Commerce.

He also questioned whether U.S. authorities can handle the

tariff collections, potentially leading to delays and backlogs.

"Is border trade equipped to manage the checks and duties

collection? If not, what happens with customs backlogs? It's a

huge additional burden from next month," said Wilson.