Trump triples tariff to 90% on small parcels from mainland China, Hong Kong
New rate on packages priced up to US$800 will be 90 per cent of their value, or US$75, up from the original levy of 30 per cent, or US$25
US President Donald Trump has tripled the tariff on small parcels sent to the United States from mainland China and Hong Kong that are currently exempt from duties, amid an escalating trade war between the world’s two largest economies.
According to an amendment on so-called reciprocal tariffs published by the White House on Wednesday Hong Kong time, the new rate on shipments priced up to US$800 will be 90 per cent of their value, up from the originally planned levy of 30 per cent.
The per postal item fee will be raised to US$75 from the original US$25 after May 2 and US$150 from the planned US$50 after June 1.
While the tax exemption on items of marginal value under a rule dating back to the 1930s was due to end on May 2, the latest increase comes after Beijing retaliated against Trump’s previous round of tariffs.
Washington earlier accused Chinese online marketplaces such as Temu and Shein of taking advantage of the “de minimis” loophole to send goods to the US duty-free.
In the latest development, Trump also announced he would apply an additional 50 per cent tariff on Chinese imports, pushing the total levy on many goods from the country to 104 per cent. The new US tariff took effect at noon on Wednesday Hong Kong time.