Trump ends China low-value package tariff exemption

WASHINGTON/LOS ANGELES:

The Trump administration ended US duty-free access for low-value shipments from China and Hong Kong on Friday, removing the "de minimis" exemptions availed of by Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods.

The action restores an executive order from President Donald Trump in February that was quickly suspended due to a lack of screening procedures for sub-$800 shipments that sparked chaos at airports and caused millions of packages to pile up.

US Customs and Border Protection (CBP) said it has "a massive task at hand". A spokesperson for the agency said that it CBP is ready to handle the enforcement and collection of Trump's tariffs on small Chinese shipments.

"We are prepared and equipped to carry out enhanced package screening and enforce orders effectively as outlined" in Trump's executive order ending de minimis treatment for China, the spokesperson said, adding the new procedures should not affect passenger wait times at airports and ports of entry.

Under CBP's latest guidance, shipments from China and Hong Kong will now be subject to Trump's new tariffs of 145% plus any prior duties, except for products such as smartphones which were excluded last month. These will largely be handled by express shippers such as FedEx, United Parcel Service or DHL.

Items valued at up to $800 and sent from China via postal services are treated differently. They are now subject to a tax of 120% of the package's value or a flat fee of $100 per package – an amount that rises to $200 in June.