September 2025 Global Trade News | US Tariff Changes, VAT Updates & Compliance Insights

US ends de minimis tariff exemption, hitting global shipping arrangements

On 29 August 2025, the United States formally removed the de minimis exemption for shipments valued under $800.  This meant that millions of previously exempt shipments being subject to additional duties and customs checks.

The move follows the earlier removal of the exemption for packages from mainland China and Hong Kong, which accounted for the majority of packages imported into the US under the de minimis exemption.   

Earlier in August, postal services around the world reacted by suspending some deliveries to the US due to confusion over how the new import rules would be implemented. 

Market observers have cautioned that the removal of the de minimis exemption is likely to have a disproportionate impact on small businesses which primarily export to the US market, or businesses based in the US which rely on importing supplies from abroad.  These increased costs are ultimately likely to be passed onto consumers and reflected by higher pricing.

The US administration has stated that the goal of removing the exemption is to prevent international shippers from ‘[evading] tariffs and [funnelling] deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States’. 

Other jurisdictions with similar exemptions are considering similar moves.  The European Union has proposed removing its €150 de minimis threshold, most likely in 2028.  The United Kingdom has launched a review into its current customs exemption threshold of £135. 

Switzerland removes financial deposit requirement for VAT registration

In order to simplify the VAT regime for non-resident (overseas) businesses based outside Switzerland, the Swiss Federal Tax Administration (SFTA) has removed the requirement for applicants to provide a financial deposit as part of the registration process.

Under Art. 94 Abs. 2 MWSTG (Federal Law on Value Added Tax), the SFTA is entitled to request a financial deposit from non-resident businesses seeking to apply for VAT. 

However, under the SFTA’s updated guidance (MWST-Infos – Ausländische Unternehmen, VAT Info 22 – Foreign Companies), the SFTA has indicated that it will no longer routinely request this deposit, except in exceptional circumstances.

This change in practice means that it will now be easier for non-resident businesses to apply for VAT.  These businesses previously needed to set aside a potentially significant sum of funds in order to complete the VAT registration process, impacting their cash flow. 

The SFTA has also initiated the process of refunding businesses which have previously paid a financial deposit.

However, the SFTA reserves the right to request a financial deposit in specific circumstances where it deems necessary to do so.  For example, a deposit requirement may be imposed on a VAT-registered business if they have previously failed to comply with their obligations.

Romania increases VAT rates

Effective from 1 August 2025, the standard rate of VAT in Romania was increased by 2% to 21% (up from 19%).  The increase is intended to ensure that the country remains compliant with European Union budgetary requirements.

In addition to the new standard rate, the two reduced rates of 5% and 9% have been merged to form a new reduced rate of 11%. 

The newly introduced reduced rate of 11% will apply to the following goods and services:

• Medicines (for human use)
• Foodstuffs (excluding alcoholic beverages, high sugar content foods, some dietary supplements)
• Supply of water and irrigation services
• Agricultural input products (fertilisers, pesticides, seeds etc.)
• Books, newspapers and magazine publications (excluding those primarily consisting of audio, video or advertising)
• Access to cultural sites (museums, castles, gardens etc.)
• Firewood and wood pellets
• Thermal energy for heating
• Social housing
• Hotel accommodation and campsites
• Restaurant and catering services (excluding alcoholic and high sugar content beverages)