From May 14th, packages from Hong Kong and China valued under $800 shall be topic to both a 54 p.c tariff — down from 120 p.c — 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 price or by share. Earlier plans for a doubling of the flat price to $200 from June 1st have been scrapped.
The tax on items under $800 is an effort to counter the consequences 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 p.c price on de minimis items, with a $25 flat price, which was later tripled after which elevated once more. The most recent charges stay considerably larger than these included in his first tariffs package deal.
Corporations like Temu and Shein thrived because of 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 not too long ago raised their costs for US customers in response to elevated tariffs.