1 week Ago By Cannix Yau
US President Donald Trump has tripled tariffs on small parcels from mainland China and Hong Kong which were exempt from duties, amid an escalating crossfire between the world’s two biggest economies. An amendment on reciprocal tariffs published by the White House on Wednesday said the United States would tax imports of items priced up to US$800 at the rate of 90 per cent of their value, up from the original levy of 30 per cent. Washington will also increase the per postal item 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 $50 announced previously. While the tax exemption on items of marginal value under a rule dating back to the 1930s was due to end end May 2, the latest increase comes after Beijing retaliated for Trump’s previous round of tariffs. Chinese online marketplaces like Temu and Shein had used the de-minimis loophole to enter the US duty free so far.
The increases come as Beijing hits back at the sweeping tariffs by the US last week, saying it will impose a 34 per cent tariff on imported American goods in addition to existing duties in retaliation to similar moves by the US. The Chinese tariff will apply from April 10, according to the State Council, China’s cabinet. The retaliation announced on Friday came two days after the US unveiled a 34 per cent tariff on Chinese goods.
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