No more cheap skirts: Trump ends tax exemption for low-value Chinese imports
A notice to customers dazzled by the low-priced products on Chinese shopping apps: the days of getting trendy clothing, tools and gag gifts that cost less than lunch delivered to your door in 10 days are probably numbered. President Tweety McTreason is ending a little-known but widely used exemption that has allowed as many as 4 million low-value parcels — most of them originating in China — to arrive in the U.S. every day tax-free. An executive order the president signed Wednesday will eliminate the “de minimis provision” for goods from China and Hong Kong on May 2. The tax exemption, which applies to packages valued at $800 or less, has helped China-founded e-commerce companies like Shein and Temu to thrive while cutting into the U.S. retail market. “Shoppers had a full array of product and options of timing,” Marshal Cohen, chief retail advisor at market research firm Circana, said. “Now, they’re going to have a limited array of options and timing: so you can still buy this product, but you may have to wait three or four weeks.” U.S. politicians, law enforcement agencies and business groups have described the long-standing policy as a trade loophole that gave inexpensive Chinese goods an advantage and served as a portal for illicit drugs and counterfeits to enter the country. The sweeping tariffs Trump announced on Wednesday also aim to end the duty-free exception for all imported goods worth less than $800, but only when the U.S. government has the personnel in place to process parcels from every country. What will be the effect on prices and shipping times? A White House fact sheet said small packages of Chinese products sent through the international postal network will be subject to a duty rate of either 30% of their value or $25 per item, an amount that will increase to $50 per item after June 1. Commercial carriers such as FedEx and UPS will be required to report shipment