Small U.S. businesses reliant on overseas suppliers are bracing for turbulence as a new policy ending duty exemptions for low-value imports takes effect. Under an executive order signed by former U.S. President Donald Trump, packages valued under $800 shipped outside the international postal network will now face full tariffs starting August 29, disrupting a critical lifeline for many entrepreneurs.
"This isn\u2019t just about costs—it\u2019s about survival," said Maria Chen, a Los Angeles-based retailer sourcing handmade goods from artisans across Asia. "Many of us built our businesses around affordable access to unique products. These tariffs could erase years of progress."
The move, part of broader U.S. trade policy adjustments, has raised concerns among analysts about ripple effects on global supply chains. While aimed at curbing tax loopholes, critics argue it disproportionately impacts micro-enterprises and could strain cross-border e-commerce partnerships—particularly with Asian manufacturers and creative hubs.
Economists note the timing coincides with shifting trade dynamics, including renewed U.S. efforts to rebalance import dependencies. However, small business coalitions warn the policy may accelerate consolidation in retail sectors, favoring larger corporations with established logistics networks.
As the deadline approaches, affected entrepreneurs are exploring alternatives, from renegotiating supplier contracts to absorbing costs—a challenge for businesses still recovering from pandemic-era disruptions.
