President Donald Trump has signed an executive order increasing duties on small packages shipped from China, raising them from 30% to 90%. This change, set to take effect on May 2, will likely impact the import of popular low-cost goods.
The new rule targets “low-value imports” from China and comes alongside a significant increase in tariffs on Chinese goods, which will rise from 34% to 84%, according to a White House announcement made Tuesday.
This follows a previous order signed by Trump last week, which ended the duty-free exemption for goods from China valued at $800 or less. The exemption has been under scrutiny, particularly due to the rise of Chinese-based online retailers like Shein and Temu, which have contributed to a surge in shipments taking advantage of the exemption.
Under the new rules, products imported from China under this exemption will face a duty rate of 30% or $25 per item, which will increase to $50 per item after June 1. However, with the new executive order, the duty rate will climb further to 90%, with the per-item rate rising to $75 starting May 2 and $150 by June 1.
This move comes after Trump had previously canceled the exemption in February but reversed the decision due to major logistical issues. At the time, China strongly criticized the U.S., accusing it of politicizing trade and using economic issues as leverage.