Silke Mayr Donald Trump has closed a loophole, taxing low-value goods like clothing shipped from China. The US Postal Service (USPS) announced it will suspend parcel deliveries from mainland China and Hong Kong indefinitely. Letters, however, remain unaffected by this decision. USPS did not provide a reason for the parcel suspension.
New trade rules, effective Tuesday, now require taxes on small packages valued at $800 or less. These changes align with measures President Trump introduced, including a 10% tariff on all goods imported from China. This tariff expansion impacts a wide range of products, including toys and fashion items.
The “de minimis” tax exemption has long benefited Chinese e-commerce giants such as Shein and Temu. They have used it to reach millions of US customers without paying customs fees. While the loophole faced scrutiny during the Biden administration, Trump’s latest tariffs have escalated trade tensions.
China responded by announcing its own tariffs. Starting February 10, coal and liquefied natural gas (LNG) will face a 15% levy. Additionally, crude oil, large-engine vehicles, and agricultural machinery will be subject to a 10% tariff.
Nick Stowe, CEO of Monsoon & Accessorize, expressed support for the US’s crackdown on de minimis exemptions. He stated that the loophole has allowed Chinese retailers to “undercut” competitors in other markets, bypassing customs duties while building massive operations. “It’s a long-standing complaint from retailers in the US, UK, and Europe,” Stowe explained.
Trade expert Deborah Elms emphasized the significant impact of Trump’s tariff expansion. “The changes hit hardest on goods shipped directly from Chinese e-commerce platforms to US consumers,” she said. According to a 2023 US Congress report, nearly half of all de minimis parcels arriving in the US came from China. Officials have noted that the volume of these parcels complicates efforts to inspect them for illegal goods.
President Trump is expected to discuss the new tariffs with Chinese leader Xi Jinping in the coming days.