The United States has ended a special exemption that allowed small, low-cost packages from China and Hong Kong to enter the country without paying tariffs. This change will affect e-commerce companies like Shein and Temu, as well as those sending illegal items like fentanyl. The decision is a return to an executive order by President Trump, which was put on hold earlier due to issues with screening these small shipments.
U.S. Customs and Border Protection (CBP) says it is ready to enforce the new rules, which will require more screening of these packages. However, the new rules should not cause delays for passengers at airports since the packages are processed in the cargo area, not where passengers go.
Now, packages from China and Hong Kong will be subject to a 145% tariff, in addition to any previous tariffs, with a few exceptions like smartphones, which were excluded last month. Shipments valued at up to $800, sent via postal services, will be taxed at 120% of the package’s value or a flat fee, which will rise in June. The U.S. Postal Service (USPS) will not handle the duty collections; instead, airlines and shipping companies will work with Chinese postal authorities to pay the taxes before the packages are shipped.
These low-value shipments are significant, with an estimated $5.1 billion in goods coming into the U.S. from China in 2024. Some companies are worried about potential delays in handling these shipments, especially when airlines must collect duties. There’s also confusion over certain rules, like how to identify the true origin of products shipped from other countries but made in China.
A late change in the rules means that shipments from China valued at up to $800 can avoid some paperwork, but this has raised concerns about security. Without detailed information on these packages, it will be harder to properly inspect them for illegal or unsafe items, like fentanyl.
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The Trump administration’s decision to end the tariff exemption was partly due to concerns that it allowed unsafe shipments, such as fentanyl chemicals, to enter the U.S. without proper screening.
