In Focus by The Hindu Tariff watch Part 1: Will Trump’s duty-free cut hurt India’s online sellers?
Sep 5, 2025
Movin Jain, Co-founder of Skydo, a platform aiding Indian exporters, discusses the recent removal of the U.S. de minimis exemption and its impact on small businesses in India. He highlights the logistical challenges and increased costs exports now face. Jain emphasizes the necessity for Indian exporters to diversify geographically and improve operational efficiencies. The conversation also reflects on the resilience of Indian businesses, exploring how they can adapt to changing global trade dynamics while finding new opportunities in overseas markets.
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End Of The $800 Duty-Free Loophole
- The US removed the de minimis exemption (previously $800) on August 29, ending duty-free entry for many low-value parcels.
- This change directly threatens Indian small exporters who relied on low paperwork and cheap shipping to sell to US consumers.
Small Sellers Using Marketplaces To Reach US Buyers
- Movin describes a small stationery maker in Chennai who can sell a product much cheaper domestically and at a 10x price to US buyers via Amazon.
- He explains most individual shipments are low-value and previously fell under the de minimis threshold, avoiding duties and paperwork.
Individual Shipments Enabled Small-Scale Exports
- Small exporters often ship individually rather than in bulk because they lack volume for container shipments.
- Individual parcels were typically under the $800 threshold and thus avoided compliance and duties, enabling viable margins.