Trump Freezes Tariffs on Small Packages from China After Confusion at USPS
President Donald Trump halts changes to tariff exemptions on shipments from China, ensuring the $800 threshold remains in place temporarily.
President Donald Trump has temporarily frozen the new tariffs on small packages from China after his sudden decision to cancel tariff exemptions on shipments worth under $800 led to confusion at the U.S. Postal Service (USPS) and other agencies.
The USPS initially halted the acceptance of Chinese packages following the executive order but reversed its decision the following day.
This caused uncertainty about the status of shipments from companies like Shein and Temu, which had used the exemption to rapidly expand in the U.S. market.
Trump's change was part of a broader move to raise tariffs on Chinese goods by 10%.
However, a new adjustment announced today stated that the tariff exemption on packages under $800 would remain in place until 'appropriate systems are developed to handle the full and rapid processing of tariffs.' The move follows other rapid changes under Trump's administration, including legal challenges, such as his recent decision to impose a 25% tariff on goods from Mexico and Canada before freezing the move for further discussions.
The U.S. had already been reviewing the exemption for low-value packages, known as de minimis, even before Trump took office.
The Biden administration proposed tightening the rules on such packages from China in September, citing concerns over competition and illegal drug shipments.
In 2016, the U.S. raised the de minimis exemption from $200 to $800 to facilitate trade, but the expansion of e-commerce has led to a surge in the number of packages entering the U.S. under this threshold, growing from 140 million to over 1.3 billion packages annually last year.
The USPS initially halted the acceptance of Chinese packages following the executive order but reversed its decision the following day.
This caused uncertainty about the status of shipments from companies like Shein and Temu, which had used the exemption to rapidly expand in the U.S. market.
Trump's change was part of a broader move to raise tariffs on Chinese goods by 10%.
However, a new adjustment announced today stated that the tariff exemption on packages under $800 would remain in place until 'appropriate systems are developed to handle the full and rapid processing of tariffs.' The move follows other rapid changes under Trump's administration, including legal challenges, such as his recent decision to impose a 25% tariff on goods from Mexico and Canada before freezing the move for further discussions.
The U.S. had already been reviewing the exemption for low-value packages, known as de minimis, even before Trump took office.
The Biden administration proposed tightening the rules on such packages from China in September, citing concerns over competition and illegal drug shipments.
In 2016, the U.S. raised the de minimis exemption from $200 to $800 to facilitate trade, but the expansion of e-commerce has led to a surge in the number of packages entering the U.S. under this threshold, growing from 140 million to over 1.3 billion packages annually last year.
