President Donald Trump of the United States on Wednesday signed an executive order that closes a trade loophole known as “de minimus” that has allowed low-value packages from China and Hong Kong to enter the United States free of duties.
Trump signed the order, which takes effect at 12:01 a.m. Eastern Time May 2, in the Rose Garden of the White House after announcing sweeping new tariffs on global trading partners.
According to the the White House, the move came after Commerce Secretary Howard Lutnick certified adequate systems are in place to collect tariff revenue” on the shipments.
The White House said that imported goods from China and Hong Kong sent outside the international postal network and valued at or under $800 would now be subject to all applicable duties.
It added that Imported goods sent through the postal network and valued at or under $800 would now be subject to a duty rate of either 30% of their value or $25 per item, with that rate increasing to $50 per item after June 1.
Recall that Trump had signed an initial order on February 1 ending duty-free entry for the cheap Chinese goods, but later paused the order because of logistical issues complicating the inspection of millions of the low-value shipments.
DAILY POST reports that the number of shipments entering the US through the duty-free route has exploded in recent years, reaching nearly 1.4 billion packages last year.
Trump campaigned on a promise to punish China for the role it has played in the synthetic opioid crisis that has killed more than 450,000 Americans in the last decade.
Trump's order affecting de minimis parcels was paused on February 7 because there had not been sufficient time to prepare, with packages stacking up at ports of entry.
The White House said carriers transporting the Chinese and Hong Kong postal items must report shipment details to US Customs and Border Protection, CBP, maintain an international carrier bond to ensure duty payment, and remit duties to CBP on a set schedule.
