President Trump's executive order removes the de minimis exemption for low-value parcels from China and Hong Kong, impacting the flow of inexpensive goods to the U.S. Starting May 2, packages valued under $800 will incur duties, complicating purchases for consumers. Analysts note that shoppers will face reduced choices and longer wait times for delivery, while U.S. politicians view the policy change as an effort to close trade loopholes and curb illicit trafficking. This move aligns with a broader initiative to adjust tariffs on imported goods.
The exemption allowed about 4 million low-value parcels from China to arrive tax-free every day, a practice that will end on May 2 due to Trump's executive order.
The long-standing policy has been described as a loophole that favored inexpensive Chinese goods and contributed to illicit trade.
Shoppers will now face longer wait times and fewer product options as the elimination of the de minimis provision takes effect.
Under the new rules, small packages from China will incur a 30% duty or $25 per item, increasing to $50 later in June.
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