Latest news with #OBBBA
GMA Network
5 hours ago
- Business
- GMA Network
US ends tariff exemption for all low-value packages
WASHINGTON — The United States is suspending a "de minimis" exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, the White House said on Wednesday. Under an executive order signed by President Donald Trump, packages valued at or under $800 sent to the US outside of the international postal network will now face "all applicable duties" starting on August 29, the White House said. Trump earlier targeted packages from China and Hong Kong. The tax and spending bill recently signed by Trump repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027. "Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now," the White House said, referring to the bill known as the One Big Beautiful Bill Act. Goods shipped through the postal system will face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate. Between 2015 and 2024, the annual volume of de minimis shipments entering the US increased from 134 million shipments to over 1.36 billion shipments. US Customs processes over 4 million daily de minimis shipments. This month, Reuters reported air cargo shipment volume from Asia has declined by 10.7% since the US canceled the tax-free exemption for low-value packages from China early in May. Since May 2, however, shipments sent from China and Hong Kong have been taxed at a rate initially as high as 145% before settling to as low as 30% after a mid-May trade detente between the US and China. Low-value e-commerce out of Asia has been making up an increasing proportion of global air freight and boosting airlines' cargo businesses. Last year such shipments—at 1.2 million metric tons—made up 55% of goods shipped from China to the US by air compared to just 5% in 2018. They have been used by companies like low-cost e-commerce platforms such as Shein and PDD's PDD.O Temu. Republican US Senator Jim Banks of Indiana praised the action, saying "for too long, countries like China have flooded our markets with duty-free, cheap imports." — Reuters
BusinessToday
7 hours ago
- Business
- BusinessToday
US Ends Tariff Exemption For Low-Value Packages Amid Trade Crackdown
US Port of Long Beach The United States will scrap a long-standing 'de minimis' exemption that allowed low-value shipments to enter the country without tariffs, the White House announced on Wednesday. Under an executive order signed by President Donald Trump, packages worth US$800 or less sent outside the international postal system will be subject to 'all applicable duties' starting August 29. The exemption, which fuelled a boom in cross-border e-commerce, previously enabled retailers and consumers to bypass customs duties on small shipments. 'Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now,' the White House said, referring to the recently signed One Big Beautiful Bill Act. The legislation will fully repeal the exemption worldwide in July 2027, but Trump's move accelerates the timeline. Goods sent through postal networks will face either an ad valorem duty equal to the originating country's tariff rate or a temporary fixed tariff of US$80 to US$200 for six months. The exemption's removal follows Trump's earlier actions targeting packages from China and Hong Kong. Since May, shipments from both markets have faced tariffs as high as 145%, later reduced to around 30% after a trade truce in mid-May. Low-value e-commerce, particularly from Asia, has become a major driver of air freight, accounting for 55% of China-to-US air shipments in 2024 compared to just 5% in 2018. Platforms like Shein and PDD Holdings' Temu have benefited from the previous duty-free regime. Annual de minimis shipments surged from 134 million in 2015 to over 1.36 billion by 2024, with US Customs processing more than 4 million packages daily. Air cargo volumes from Asia have already dropped 10.7% since the US ended tax-free treatment for low-value goods from China in May. Republican Senator Jim Banks welcomed the policy shift, saying, 'For too long, countries like China have flooded our markets with duty-free, cheap imports.' Reuters Related
CBC
11 hours ago
- Business
- CBC
U.S. to halt 'de minimis' tariff exception for all low-value packages
The United States is suspending a "de minimis" exemption that allowed low-value commercial shipments to be shipped to the U.S. without facing tariffs, the White House said on Wednesday. Under an executive order signed by U.S. President Donald Trump on Wednesday, packages valued at or under $800 US sent to the U.S. outside of the international postal network will now face "all applicable duties" starting Aug. 29, the White House said. Trump earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027. "Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now," the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act. Goods shipped through the postal system will face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 US to $200 US depending on the country of origin's tariff rate.
The Guardian
12 hours ago
- Business
- The Guardian
White House to end US tariff exemption for all low-value overseas packages
The United States is suspending a 'de minimis' exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, the White House said on Wednesday. Under an executive order signed by Donald Trump on Wednesday, packages valued at or under $800 sent to the US outside of the international postal network will now face 'all applicable duties' starting on 29 August, the White House said. The US president earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on 1 July 2027. 'Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now,' the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act. Goods shipped through the postal system will face one of two tariffs: either an 'ad valorem duty' equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate.
Straits Times
13 hours ago
- Business
- Straits Times
US ends tariff exemption for all low-value packages
Sign up now: Get ST's newsletters delivered to your inbox A cargo ship full of shipping containers is seen at the port of Oakland, as trade tensions escalate over U.S. tariffs, in Oakland, California, U.S., March 6, 2025. REUTERS/Carlos Barria/File Photo The United States is suspending a "de minimis" exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, the White House said on Wednesday. Under an executive order signed by President Donald Trump on Wednesday, packages valued at or under $800 sent to the U.S. outside of the international postal network will now face "all applicable duties" starting August 29, the White House said. Trump earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on July 1, 2027. "Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now," the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act. Goods shipped through the postal system will face one of two tariffs: either an "ad valorem duty" equal to the effective tariff rate of the package's country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin's tariff rate. REUTERS
