Agenda-setting intelligence, analysis and advice for the global fashion community.
The escalating trade war between the US and China saw President Donald Trump raise tariffs even further on small parcels that were until now exempt from taxes.
The US will tax imports of items priced up to $800 at the rate of 90 percent of their value, up from a previous plan to levy a 30 percent ad valorem tax, according to the amendment on reciprocal tariffs published by the White House Wednesday.
While the tax exemption on items of marginal value under a rule dating back to the 1930s was due to end May 2, the latest increase comes after Beijing retaliated to Trump’s previous round of tariffs. Chinese online marketplaces like Temu and Shein had used the de-minimis loophole to enter the US duty free so far.
Washington will also increase the per postal item fee on goods entering after May 2 and before June 1 to $75 from the planned $25. Parcels entering after June 1 will pay a fee of $150 per item instead of $50 announced previously, according to the executive order Wednesday.
ADVERTISEMENT
The increase comes as Trump pushes ahead with 104 percent tariffs on many Chinese goods, even as his administration signalled readiness to dealmaking that could reduce or eliminate higher tariffs.
By Karthikeyan Sundaram
Learn more:
‘De Minimis’: The Trade Perk Trump May End as China Tensions Rise, Explained
President Trump is considering changes to the US “de minimis” exemption on import tariffs, which has become controversial due to its role in trade imbalances and the rapid growth of Chinese e-commerce platforms.
