Trump to end tariff exemption for low-value goods
Trump signed an executive order last week ending the so-called "de minimis" exemption. The tax break allows imports of goods worth 800 dollars or less to be shipped into the United States duty free.
Trump's executive order cancels the tax break for low-value goods from all countries and regions.
US Customs and Border Protection says the tariff exemption was applied to over 1.3 billion shipments in 2024. The figure has grown nearly ten-fold over the past decade.
The White House says removing the trade loophole is aimed at preventing companies from dumping goods in the US at below market value. It says the move is also needed to stem the flow of illicit drugs into the country.
Import duties are already back in place for small packages coming in from mainland China and Hong Kong. The exemption on these imports was repealed in May.
Shipments from online shopping businesses based in China exploded in recent years. Those firms have now started raising prices of their goods sold in the US market.
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