By ANNE D’INNOCENZIO and DIDI TANG

NEW YORK (AP) — Consumers can expect higher prices and delivery delays when the Trump administration ends a duty-free exemption on low-value imports from China Friday.

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The expiration of the so-called de minimis rule that has allowed as many as 4 million low-value parcels to come into the U.S. every day — mostly from China — is also forcing businesses that have built their models on sourcing production in China to rethink their practices in order to keep their costs down.

But some might actually benefit from the termination of the duty exemption. For instance, companies that make their goods in the U.S. may feel relief from the competition of cheap Chinese imports, and likely experience a brighter sales outlook.

The move, which applies to goods originating from mainland China and Hong Kong, comes on top of President Donald Trump’s new tariffs totaling 145% on China. Beijing has retaliated with tariffs of 125% on the U.S., fueling a trade war between the world’s two largest economies. Sellers are already seeing cautious consumers.

On Wednesday, Trump called the de minimis exemption “a big scam going on against our country, against really small businesses.”

“We put an end to it,” he said.

What’s the de minimis provision?

Introduced in 1938, the de minimis exception was intended to facilitate the flow of small packages valued at no more than $5, the equivalent of about $109 today. The threshold rose to $800 in 2016. But the rapid rise of cross-border e-commerce, driven by China, has challenged the intent of the decades-old customs exception rule.

Chinese exports of low-value packages soared to $66 billion in 2023, up from $5.3 billion in 2018, according to a February report by the Congressional Research Service. And the U.S. market has been a major destination.

Former President Joe Biden proposed a rule last year that said foreign companies can’t avoid tariffs simply by shipping goods that they claim to be worth $800 or less. Trump tried in February to end the exception but his initial order was called off within days when it appeared the U.S. was not prepared to process and collect tariffs on the deluge of parcels coming in.

What’s the impact on shoppers?

Consumers will face higher prices and delivery delays now that parcels will go through a more complicated customs process to enter the U.S. involving declaration and duty payment.

Businesses could factor tariffs into the final price, or they can list them separately in the same way as sales taxes. For instance, Temu, which is owned by the Chinese e-commerce company PDD Holdings, now lists “import charges” that have reportedly doubled many items’ prices. (The retailer also has a “local warehouse” option for some products, which are shipped from within the U.S. and therefore avoids the import charge.)

Meanwhile, Shein, now based in Singapore, has a checkout banner that reads, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

FILE – A made in China sticker is displayed on a hat at a store in Chinatown in San Francisco, April 18, 2025. (AP Photo/Jeff Chiu, File)

Amazon says it’s not planning to display added tariff costs next to product prices on its site — despite a report that sparked speculation the e-commerce giant would soon show the new import charges, and the White House has made fiery comments denouncing the purported change.

What about sellers and carriers?

Parcel carriers will be burdened with collecting duties, and the paperwork to comply with the new rule could result not only in higher prices but also delays and even disruptions to delivery, said Ram Ben Tzion of the vetting platform Publican.

Major commercial carriers such as UPS and FedEx have said they are well-equipped and prepared to collect duties on international parcels in compliance with local laws, including the new U.S. rule.

Commercial carriers will be collecting 145% tariffs on declared values. The U.S. Postal Service, a government agency that offers international mail service, can choose either to charge a 120% tariff on low-value packages or a flat fee of $100 per shipment, which is set to rise to $200 on June 1.

The U.S. Customs and Border Protection says it “stands ready to fully implement the restrictions on de minimis shipments and collect all revenue owed for these shipments on May 2, 2025.”

However, experts have expressed concerns that the surge in the workload could be a serious challenge.

In January and February, more than 70% of the 216 million packages coming into the U.S. were originating from China, according to CBP.

What’s the impact on businesses?

Those that relied on the de minimis exemption are now having to adjust.

John Curry, owner and chief executive officer of HAPARI International, an Arizona-based swimwear business, had switched from bulk shipping to de minimis shipping about six months ago to improve cash flow, speed up delivery, and eventually eliminate U.S.-based warehousing. His company makes its products in China and sells them directly to U.S. customers via its own online storefront.

Curry said he planned to stay the course and pay the additional 145% duty — one parcel at a time — while waiting for the U.S. and China to work out a more sustainable approach.

“There has to be a solution because both countries cannot survive this way,” Curry said.

Izzy Rosenzweig, founder and CEO of the logistic company Portless, helps businesses like HAPARI to ship goods from its China-based warehouse using the de minimis exemption. He says U.S. businesses are likely to stay in China for now given the competitiveness of the manufacturing base and of the supply chain in China but can be expected to raise prices.

And while businesses with good profit margins probably will continue to ship from China, those that run on razor-thin profit margins are likely to “go local”, setting up more U.S.-based warehouses to defray tariff costs, he said.

Who benefits?

Trade groups representing flag manufacturers and bike dealers said they expect to benefit from the end of the duty exemption.

In written comments on the U.S. Trade Representative portal, for instance, the Flag Manufacturers Association of America said its members have been bombarded by an onslaught of American flag imports mostly made in China that are falsely marketed and significantly discounted. The group cited a drop of 25% to 35% in industrywide sales of American-made U.S. flags last year.

Larry Severini, CEO of Embroidery Solutions Manufacturing LLC, which makes the star fields for U.S. flag manufacturers, had to shutter one of his two plants in South Carolina earlier this year because of stiff competition from cheap imports. He noted sales have fallen 20% since 2021 in part because of the de minimis exemption.

“We need duties to level the playing field to make it fair,” Severini said.

The National Bike Dealers’ Association’s Heather Mason said shoppers often check out $2,000 bike from a trusted brand like Trek and then they find a lookalike online for $1,200 — often with lower quality parts, no warranty, no service, and safety risks.

“Reputable brands follow strict safety, labor, and warranty standards,” she said in an email to The Associated Press. “De minimis allowed bad actors to dodge these.”

Tang reported from Washington.

SAO PAULO (AP) — Sister Inah Canabarro, a Brazilian nun and teacher who was the world’s oldest person, died on Wednesday just weeks short of turning 117, her religious congregation said.

Canabarro died at home of natural causes, said her Teresian nun congregation, the Company of Saint Teresa of Jesus. She was confirmed in January as the world’s oldest person by LongeviQuest, an organization that tracks supercentenarians around the globe.

She would have turned 117 on May 27. According to LongeviQuest, the world’s oldest person is now Ethel Caterham, a 115-year-old British woman.

Canabarro said her Catholic faith was the key to her longevity, in a video taken by LongeviQuest in February 2024. The smiling Canabarro can be seen cracking jokes, sharing miniature paintings she used to make of wild flowers and reciting the Hail Mary prayer.

“I’m young, pretty and friendly — all very good, positive qualities that you have too,” the Teresian nun told the visitors to her retirement home in the southern Brazilian city of Porto Alegre.

As a child, Sister Inah Canabarro was so skinny that many people didn’t think she would survive into adulthood, Cleber Canabarro, her 84-year-old nephew, told The Associated Press in January,

Her great-grandfather was a famed Brazilian general who took up arms during the turbulent period following Brazil’s independence from Portugal in the 19th century.

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She took up religious work while she was a teenager and spent two years in Montevideo, Uruguay, before moving to Rio de Janeiro and eventually settling in her home state of Rio Grande do Sul. A lifelong teacher, among her former students was Gen. Joao Figueiredo, the last of the military dictators who governed Brazil between 1964 and 1985. She was also the beloved creator of two marching bands at schools in sister cities straddling the border between Uruguay and Brazil.

For her 110th birthday, she was honored by Pope Francis. She was the second oldest nun ever documented, after Lucile Randon, who was the world’s oldest person until her death in 2023 at the age of 118.

Canabarro took the title of the oldest living person following the death of Japan’s Tomiko Itooka in December, according to LongeviQuest. She ranked as the 20th oldest documented person to have ever lived, a list topped by Frenchwoman Jeanne Calment, who died in 1997 at the age of 122, according to LongeviQuest.

“Her long and meaningful life touched many, and her legacy as a devoted educator, religious sister, and a supercentenarian will be remembered with great admiration,” LongeviQuest said in a statement.

The wake for Canabarro will take place on Thursday in Porto Alegre, the capital of southern state of Rio Grande do Sul, her order said.

Come July, nearly 200 people will be out of work as a storied St. Paul recycling facility closes permanently.

Smurfit WestRock, a global packaging company, announced Wednesday that it will lay off roughly 189 employees in the permanent closure of its St. Paul coated recycled board mill at 2250 Wabash Ave., off Interstate 94 and Minnesota 280, according to a notice filed with the state.

Layoffs are expected to occur June 30 with affected positions including, but not limited to, chemical attendant, paper tester, refiner operator, loader, electricians, managers and supervisors, according to the notice.

Of the employees affected, some are represented by the International Brotherhood of Electrical Workers (IBEW Local 110), the International Union of Operating Engineers (IUOE Local 70) and the United Steelworker of America (USW Local 264).

Bumping rights will follow applicable collective bargaining agreements and there are no trade implications at this time, per the notice.

In addition to the St. Paul facility, the company will discontinue production at its containerboard mill in Texas and permanently close two converting facilities in Germany totaling some 650 job losses, according to a company news release.

“While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business,” said Tony Smurfit, president and group chief executive officer of Smurfit WestRock, in the release.

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By LOLITA C. BALDOR, Associated Press

WASHINGTON (AP) — The number of sexual assaults reported across the U.S. military dipped by nearly 4% last year, fueled by a significant drop in the Army, according to a new Pentagon report. It was the second year in a row with a decrease, reversing a troubling trend that has plagued the Defense Department for more than a decade.

Senior defense officials said that while the decline is a good sign, the number of reported assaults is still too high and the military needs to do more to get victims to report the often undisclosed crime.

According to the report, there were 8,195 reported sexual assaults in 2024 involving members of the military, compared with 8,515 in 2023. In 2022, there were 8,942 reported sexual assaults, a spike that triggered widespread alarm and led to new programs and an infusion of funding to try to combat the problem.

The overall decrease was due to a 13% drop in reported sexual assaults across the Army, which is the largest military service.

All the other services saw increases. The Navy had the largest jump of 4.3%, while the Air Force had a 2.2% increase and the Marine Corps rose by less than 1%.

Of the 8,195 total, there were 512 service members who reported an assault that happened before they entered the military. The Pentagon encourages reporting so that victims can get any support they need. In addition, 641 were civilians who said they were assaulted by a member of the military.

Uncertainty about impact of job cuts on sexual assault programs

Speaking to reporters Thursday, Nate Galbreath, director of the Pentagon’s sexual assault prevention and response office, said it’s still not clear how the Trump administration’s personnel and budget cuts will affect these programs. He said officials are asking for details on the number of assault prevention staff who have been laid off or who took any of the early retirement offers.

Andra Tharp, director of the command climate office, added that “when the hiring freeze went into effect, there were about 300 prevention workforce positions posted on USA jobs that are essentially on hold.” But, she said, some departments have been able to get exemptions.

FILE – The Pentagon is seen in this aerial view, in Washington, March 27, 2008. (AP Photo/Charles Dharapak, File)

Galbreath said the department also is now able to link sexual assaults to military readiness. He said a survey showed that service members who had experienced assault were more likely to leave the military, be demoted, miss a promotion or have some other type of negative action put in their files than those who hadn’t been been victimized.

He said the survey followed troops who said in 2016 that they had experienced a sexual assault, and a group of others who did not.

As a result, he said the Defense Department is working to develop a recovery program to teach healthy coping skills and other assistance for victims. The department also has a Safe Helpline where troops can seek help.

Sexual harassment complaints rise

While reported assaults decreased, the number of sexual harassment complaints went from 2,980 in 2023 to 3,014 last year. Most were filed by female service members, and the vast majority of those accused were male.

The number of cases in which misconduct was substantiated increased a bit last year over the 2023 total. The number of discharges and administrative actions against alleged perpetrators continued to increase, and court-martial charges declined — both trends going back several years.

Officials noted that nearly three-quarters of the court-martial cases ended in convictions, a slight increase over the previous year.

Sexual assault reports in the military have gone up for much of the past decade, except for a tiny decrease in 2020, during the COVID-19 pandemic shutdown. Officials say they are optimistic about the recent decreases but say much more work needs to be done.

As in previous years, most sexual assault reports are filed by those between ages 18 and 24 and involve lower-ranking service members.

Impact of Pentagon changes

While it is difficult to point to any one reason for the two-year decline, the Defense Department has been making a series of changes over the past year that officials say may be contributing.

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The services were using more than $1 billion to improve programs and hire up to 2,500 personnel as part of a new “prevention workforce” and place them at military installations worldwide.

So far, about 1,400 have been hired, but that process has stalled due to the Trump administration’s budget and personnel cuts across the federal government. Defense officials said they are working to spread the existing workers around to lessen the gaps until more can be hired.

The latest report also reflects the first full year since new prosecution procedures have been in place, putting independent lawyers in charge of those decisions and sidelining commanders after years of pressure from Congress.

Officials said it is too soon to tell what effect those changes are having on prosecutions.

The Pentagon releases a report every year on the number of sexual assaults reported by or about troops. But because sexual assault is a highly underreported crime, the department also does a confidential survey every two years to get a clearer picture of the problem. That online survey came out last year, so it was not done this year.

Last year’s survey said more than 29,000 active-duty service members said they had experienced unwanted sexual contact in the previous year, compared with nearly 36,000 in the 2021 survey, according to several defense officials. The decrease was the first in eight years.

But officials said the survey also indicates that a large number of service members never file a report.

Defense officials have long argued that an increase in reported assaults is a positive trend because so many people are reluctant to report them, both in the military and in society as a whole. Greater reporting, they say, shows there is more confidence in the reporting system and greater comfort with the support for victims.