President Donald Trump’s decision to revoke the
long-standing “de minimis” exemption—previously allowing packages under $800 to
enter the U.S. duty-free—is sending shockwaves through global commerce. Small
businesses, such as South Pacific Berets, are bearing the brunt of this abrupt
policy shift.
The new rules require tariffs to be paid on every imported
item, calculated by country of origin. This means a U.S. customer ordering
three berets—from Argentina, France, and Japan—now faces three separate tariffs
ranging from 20% to 50%, plus a flat customs fee that may exceed the value of
each beret. For small retailers, whose margins are already razor-thin, this
complexity and cost are untenable.
Worse still, postal services around the world—including New
Zealand, Australia, Japan, and over 20 other countries—have suspended shipments
to the U.S. entirely (1, 2, 3). The reason? U.S. authorities have failed to
provide clear mechanisms for how these tariffs are to be calculated or paid.
Without a functioning system, foreign postal operators are left in limbo,
unable to guarantee delivery or compliance.
This chaos disproportionately harms small businesses, which
lack the infrastructure to navigate sudden regulatory overhauls. Unlike large
corporations, they can’t absorb the costs or pivot supply chains overnight.
Many are now forced to halt U.S. sales, losing access to one of the world’s
largest consumer markets.
Trump’s administration claims the move combats smuggling and
boosts domestic manufacturing. But in practice, it’s a blunt
instrument—crippling legitimate trade, sowing confusion, and punishing
entrepreneurs worldwide. Until clarity and infrastructure catch up, small
businesses will continue to suffer, and global commerce will remain gridlocked.
For the time being, no berets will be shipped to the US and
[as it looks now], when resumed will go at a significant higher cost...
More on South Pacific Berets and the tariffs at RNZ and
Business Insider.