US raises charges on small parcels, targeting Chinese retailers

While the tax exemption on items of marginal value under a rule dating back to the 1930s was due to end May 2, the latest increase comes after Beijing retaliated to Trump’s previous round of tariffs.

The escalating trade war between the US and China saw President Donald Trump raise tariffs even further on small parcels that were until now exempt from taxes.

The US will tax imports of items priced up to $800 at the rate of 90% of their value, up from a previous plan to levy a 30% ad valorem tax, according to the amendment on reciprocal tariffs published by the White House Wednesday.

While the tax exemption on items of marginal value under a rule dating back to the 1930s was due to end May 2, the latest increase comes after Beijing retaliated to Trump’s previous round of tariffs. Chinese online marketplaces like Temu and Shein had used the the de-minimis loophole to enter the US duty free so far.

Washington will also increase the per postal item on goods entering after May 2 and before June 1 to $75 from the planned $25. Parcels entering after June 1 will pay a fee of $150 per item instead of $50 announced previously, according to the executive order Wednesday.

The increase comes as Trump pushes ahead with 104% tariffs on many Chinese goods, even as his administration signaled readiness to dealmaking that could reduce or eliminate higher tariffs.