WASHINGTON: The escalating trade war between the United States and China saw President Donald Trump raise tariffs even further on small parcels that were until now exempt from taxes.
The United States will tax imports of items priced up to US$800 at the rate of 90% of their value, up from a previous plan to levy a 30% ad valorem tax, according to the amendment on reciprocal tariffs published by the White House yesterday.
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 United States duty free so far.
Washington will also increase the per postal item fee on goods entering after May 2 and before June 1 to US$75 from the planned US$25.
Parcels entering after June 1 will pay a fee of US$150 per item instead of US$50 announced previously, according to the executive order yesterday. — Bloomberg
