Donald Trump has closed a loophole, enforcing taxes on low-value parcels like clothing from China.
The US Postal Service (USPS) has temporarily stopped accepting parcels from mainland China and Hong Kong. The suspension does not affect letter deliveries, though USPS provided no explanation for its decision.
New rules, effective Tuesday, closed a loophole that previously allowed tax-free small packages worth $800 (£641) or less. Trump introduced this measure, imposing an additional 10% tariff on all Chinese imports.
The de minimis tax exemption has faced scrutiny as Chinese companies like Shein and Temu used it to access US markets. Changes to this exemption had already been planned under President Joe Biden before Trump’s tenure. However, Trump’s recent trade announcement extended tariffs to all Chinese imports, including toys and fashion items.
In response, China plans tariffs on some US goods, starting 10 February. Coal and liquefied natural gas (LNG) will face a 15% tax, while crude oil, agricultural machinery, and large-engine cars will see a 10% tariff.
Nick Stowe, CEO of Monsoon & Accessorize, expressed support for the US crackdown on the de minimis exemption. He claimed the loophole had enabled major Chinese retailers to “undercut” competitors globally. “It has long been a complaint of UK, European, and US retailers that Shein built its business by exploiting this exemption without paying customs duty,” he told the BBC.
Trump is expected to discuss the trade measures with Chinese President Xi Jinping soon. Trade expert Deborah Elms emphasized the impact of Trump’s new tariffs, especially on goods previously shipped directly through e-commerce channels.
According to a 2023 US Congress report, nearly half of parcels entering the US under de minimis exemptions originated from China. Officials highlighted concerns about the high volume of parcels, which made screening for illegal goods more difficult.