Washington (AFP) – The United States is set to end tariff exemptions on Friday for goods shipped from China worth less than $800, a move which could have significant ramifications on consumers’ purchasing habits.
US President Donald Trump’s decision to ban the so-called “de minimis” exemption from May 2 could affect some 4 million shipments every day, according to the White House.
The move announced last month means that goods shipped commercially will soon be subject to new tariffs of 145 percent – the current level of levies imposed on goods coming from China.
Items sent through the US Postal Service will be hit with duties of 120 percent of their value, or a $100, which will increase to $200 next month.
The measures mark the latest salvo in a burgeoning trade war between the United States and China – the world’s two largest economies.
The White House has also slapped additional levies of 25 percent on several sectors including automobiles, steel and aluminum from China.
Beijing retaliated with sweeping 125 percent levies on US imports.
Most other US trading partners face a baseline tariff of 10 percent, except for Mexico and Canada which face a higher 25 percent tariff on goods not covered by a current North America free-trade deal.
The effect of the de minimis change is likely to be significant, changing overnight the cost of small-ticket, Chinese-made items that Americans have come to rely on, from clothes to toys.
The move threatens to hammer the business model of several large Chinese firms, including fast-fashion titans Shein and Temu.
The Financial Times reported earlier this week that Shein was postponing a long-standing plan to list on public stock markets due to the looming de minimis changes.
The company is exploring ways to restructure its business in the United States and is prioritizing finding “clarity” on tariffs over its initial public offering, according to the Financial Times.
Trump first floated cancelling the exemption in February before backtracking after the move caused logistical disruptions.
At the time, Beijing accused the United States of “politicizing trade and economic issues and using them as tools.”
Isn’t the whole point of that rule not to be a loophole but rather a practice that prevents the whole customs thing being unreasonably expensive for the government to implement?
“Loophole” AKA basic trading practice we provide literally every nation
It was used as a loophole. It was ridiculous it was allowed.
Pretty much every major country on the planet disagrees with you, because the de minimis exception was a practice we all shared and came to the communal conclusion was valuable and worth implementing.
Pretty much every major country agreeing to something is not the strong point you think it is for something being good or bad
Does anyone have a guide on buying directly from chinese manifacturers?
Until now Ive mostly bought my tech stuff from american resellers like amazon and ebay, since I dont want to fuck around with giving away my credit card number, but now since america cant even do dropshipping anymore I either need virtual Credit cards or an European Service specializing on importing from china
If you’re trying to do this as an American, it won’t help you. Buying directly from a Chinese manufacturer won’t avoid the tariffs, it’ll just make you responsible for handling them. The shipment will either get held at the US border until you pay, or you’ll get a bill later. Probably with some inspection fees added on top if you didn’t pre-declare.
Your best option is to ship to a friend in the UK or some other place with 10% tariffs, then have them repack the shipment and send it to you.
I am in Europe, thats why im asking for an EU based import company who handles the vat and provides me with a basic tracking system
My problem with freight forwarding is that I have to pay a lot of money to have it sent insured, since I can’t just dispute my credit card charge if the Package dosent come, since the company officially delivered it to my address.
In addition to ordering directly from china not avoiding the tariffs: it may not even be possible. Some (smaller) companies simply won’t ship to USA anymore due to the hassle of having to deal with the admin.
Smartest thing Trump’s ever done. Now kill reduced shipping costs for the “developing country” of West Taiwan. Sending things within country should not cost more than sending things from the other side of the globe.
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