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.