Trump slashes tariff on small parcels sent to US from mainland China, Hong Kong, to 54%
The new duty on small packages priced up to US$800 is lowered from 120 per cent, effective from Wednesday
US President Donald Trump has slashed the tariff on small parcels sent to the country from mainland China and Hong Kong, after an impasse was broken in the trade war between Washington and Beijing following talks over the weekend.
According to an amendment to so-called reciprocal tariffs published by the White House on Tuesday Hong Kong time, the new duty on small packages priced up to US$800 will be 54 per cent – down from 120 per cent – effective from Wednesday. It had previously been raised from 30 to 90 per cent, and then to 120 per cent.
The postal fee per item will remain at US$100 for shipments sent after May 2, while the new fee of US$200, originally scheduled to take effect on June 1, has been cancelled.
On April 2, Trump announced that the “de minimis” trade exemption for the mainland and Hong Kong – a rule dating back to the 1930s providing a reprieve from import duties for packages valued at US$800 or less – would cease on May 2.
Washington earlier accused Chinese online marketplaces such as Temu and Shein of taking advantage of the rule to send goods to the US duty free.
Analysts warned the development of Hong Kong’s e-commerce industry would be dealt a severe blow by the removal of the de minimis exemption as the mainland was its biggest production base.