Tariff axe over ecom exports

US shuts duty-free door: What it means for India

- PEERZADA ABRAR & UDISHA SRIVASTAV

India's booming ecommerce export industry is bracing for a potential disruption after US President Donald Trump signed an executive order Wednesday eliminating the long-standing duty-free exemption for low-value imports.

The move may impact Indian online sellers and ecommerce companies, many of which have built businesses around shipping small parcels — ranging from handcrafted jewelry to mobile accessories — directly to American consumers without facing tariffs. This threatens to raise costs and erode competitiveness for thousands of small exporters.

The order, effective August 29, ends the so-called "de minimis" exemption that allowed packages valued under $800 to enter the US without duties. This may force e-commerce platforms to face significant challenges due to elimination of simplified customs procedures.

"This erases a key cost advantage for Indian sellers, particularly those using direct-to-consumer (D2C) e-commerce channels," said Salman Waris, managing partner at TechLegis Advocates & Solicitors. "Businesses must adjust pricing or absorb additional tariff costs, likely making Indian goods less competitive in the US."