From Could 14th, packages from Hong Kong and China valued beneath $800 will likely be topic to both a 54 % tariff — down from 120 % — or a flat $100 per-parcel price, which hasn’t modified. Export firms retain the power to determine whether or not they need their items to be taxed at a flat fee or by proportion. Earlier plans for a doubling of the flat fee to $200 from June 1st have been scrapped.
The tax on items beneath $800 is an effort to counter the results of the earlier “de minimis” exemption, which allowed cheaper parcels to keep away from import taxes and duties. Donald Trump first introduced plans for a 30 % fee on de minimis items, with a $25 flat price, which was later tripled after which elevated once more. The newest charges stay considerably increased than these included in his first tariffs package deal.
Firms like Temu and Shein thrived due to the power to ship items on to customers tax-free, and even the lowered charges will stay a risk to their enterprise fashions. Each firms lately raised their costs for US customers in response to elevated tariffs.
