Business owners in Kenya are set to be affected by the decision of the United States President, Donald Trump, to scrap a special tariff exemption, 'de minimis', for small packages entering the country worth less than $800 (Ksh103,600).
This means that the packages will now be subject to tariffs and taxes in their country of origin, a move which has already sparked concern amongst businesses and warnings of price hikes for consumers.
In Kenya, the impact is expected to be most keenly felt by small business owners who ship their products to the US, since larger companies are expected to absorb the shock.
Trump’s administration issued the new directive in response to the use of low-value shipments to evade tariffs and smuggle drugs, ending the duty-free treatment for such packages.
Tariffs imposed on the packages will now range from $80 (Ksh10,360) to $200 (Ksh25,900) per item. However, exclusions for 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.
Reacting to the news, global postal services lamented the month-long lead time issued by Trump before the enforcement of the directive, sparking them into a frenzy.
The services raised potential delays in sending out the parcels, which could result in higher prices, leading to consumers having to bear the increased costs of shipments.
Postal services, including those in France, Germany, Italy, India, Australia, and Japan, earlier said most US-bound packages would no longer be accepted.
On Tuesday, the United Nations' Universal Postal Union said 25 member countries' postal operators had suspended outbound postal services to the country.
The latest comes amidst a flurry of tariffs imposed by Trump globally. Trump had imposed a ten per cent baseline tariff on all Kenyan exports in April 2025, and went on to retain the same tariff after consultations between the Kenyan and US governments.
The tariff will affect Kenyan exports, particularly in key sectors such as textiles, tea, and coffee, which have been exempt from tariffs under the African Growth and Opportunity Act (AGOA).
