Trump Closes Trade Loophole with New Tariff Measures

U.S. President Donald Trump signed an executive order ending the 'de minimis' trade loophole, imposing new tariffs on packages from China and Hong Kong. This move affects low-value shipments, which must now adhere to duty payments. The change seeks to increase tariff revenue and address opioid crisis links.

In a decisive move to recalibrate U.S. trade policy, President Donald Trump has enacted sweeping changes to the 'de minimis' loophole, which has allowed low-value parcels from China and Hong Kong to enter the United States duty-free. The executive order, signed in the Rose Garden, imposes new tariffs on these shipments, marking a significant shift in international commerce dynamics.

The White House emphasized the strategic nature of the decision, highlighting the increased scrutiny on packages valued at $800 or less. A substantial portion of these packages, which surpass 1.4 billion annually, will be subjected to duties beginning at 30% of their value. The tariffs are set to rise further, aiming to fortify the collection of tariff revenue.

Both Temu and Shein, major players in the influx of Chinese goods, are now re-evaluating their logistics and supply chains. With the goal of mitigating the impact of these regulatory changes, Shein has expanded its operations beyond Chinese borders. This new trade policy also aligns with the administration's broader agenda to hold China accountable for its role in the ongoing opioid crisis.

(With inputs from agencies.)