Latest gobal Updates – Last week of August 2025
The last week of August 2025 brought major shifts in U.S. and international trade policy. The U.S. has officially ended the long-standing de minimis exemption for small packages, imposed steep new tariffs on Indian goods, and extended certain tariff relief for imports from China. Meanwhile, global trade rules face mounting pressure as countries adopt increasingly protectionist measures. Below is a full breakdown of the most important latest developments.
U.S. Eliminates Duty-Free Treatment for Small Packages
As of August 29, 2025, the United States has permanently ended the de minimis exemption, which previously allowed shipments valued under $800 to enter duty-free.
All imports, regardless of value, are now subject to tariffs.
A six-month transition period allows postal services to apply a flat tariff of $80–$200 per package, depending on country of origin. Afterward, normal duty rates will apply.
The policy aims to generate up to $10 billion annually in revenue and limit counterfeit and fentanyl shipments.
Several international postal carriers have already suspended or restricted shipments to the U.S. due to uncertainty about enforcement.
This change will significantly affect cross-border e-commerce and small parcel imports. Importers should immediately re-evaluate landed costs, classification strategies, and compliance procedures.
U.S. Tariffs on Indian Imports Raised to 50%
On August 27, 2025, the U.S. doubled tariff rates on Indian-origin goods to 50% in retaliation for India’s continued purchase of Russian oil.
Sectors affected:
Textiles & apparel
Leather goods
Gems & jewelry
Machinery and marine products
(Electronics and semiconductors were excluded.)
U.S. importers relying on Indian supply chains will face steep cost increases. Companies should review sourcing contracts, explore alternative suppliers, and prepare for potential further escalations.
Some of the other developments reshaping global trade:
Congressional pushback in Washington: The proposed Trade Review Act of 2025 would require Congressional oversight of new tariffs. The White House has signaled a likely veto, highlighting growing domestic tensions over trade authority.
Court challenges to tariffs: In V.O.S. Selections, Inc. v. United States, the Court of International Trade ruled that recent “Liberation Day” tariffs exceeded presidential emergency powers, issuing a permanent injunction.
Temporary China tariff relief: The USTR extended certain Section 301 tariff exclusions through November 29, 2025, providing short-term relief for businesses dependent on Chinese imports.
Final Thoughts:
From the elimination of duty-free parcel entry to steep tariff increases on India, the last week of August 2025 underscores a new reality: trade rules are no longer stable. Importers and exporters must be prepared for rapid policy changes, unexpected costs, and the growing importance of compliance.
