If you’re a fan of online shopping, we’re sure you’ve heard of Shein, AliExpress, and Temu. The trio is famous for offering cheap products to American buyers.
However, that might not be the case anymore. President Trump just signed a new executive order to get rid of the De Minimis Tax Exemption. So all products coming from Hong Kong and China are bound to be impacted.
The president shared more details about how many of these companies used to get foreign packages without paying any kind of duty. This is as long as they come under a value of $800. Now, that’s not going to be the case after today, he added.
As per the fact sheet shared by the White House, all eligible packages will receive taxes at nearly 30% of the actual value of the product. Now the only positive thing here is that this tax could replace any other present tariff. In this manner, clients don’t need to face any kind of double whammy ordeal if Trump rolls out the 54% on China’s imports beginning next week.
Trump worked long and hard to suspend this de minimis exemption in February, but as per the White House, the efforts were put on hold after this policy resulted in chaos. Some impacts include the US Postal Service stopping shipments abruptly from China as it rushed to collect taxes on various packages.
So after giving the shipping industry so much time to prepare, it’s now ready to reinstate these orders. They will be collecting tariff revenue for all goods from the PRC. As of right now, Temu has failed to respond to any kind of request for comments. What we can confirm is how it might impact clients the most who cannot run far from Trump’s tariffs.
The reciprocal tariff plan targets so many nations, including the likes of India, Malaysia, Vietnam, and Taiwan. In addition, he chose to place another mega 34% tax on imports arising from China. Therefore, there is one thing he’s exempted from this policy, and that’s semiconductors. But the question right now is until when.
Many keep wondering if this signals the end of Americans purchasing China’s famous products, thanks to the low costs and great quality associated with them. From what we’re seeing, that might be the case as these taxes will surely raise prices.
Image: DIW-Aigen
Read next: TikTok Expands EU Data Centers, Strengthens Privacy Compliance While Navigating Fines and U.S. Uncertainty
However, that might not be the case anymore. President Trump just signed a new executive order to get rid of the De Minimis Tax Exemption. So all products coming from Hong Kong and China are bound to be impacted.
The president shared more details about how many of these companies used to get foreign packages without paying any kind of duty. This is as long as they come under a value of $800. Now, that’s not going to be the case after today, he added.
As per the fact sheet shared by the White House, all eligible packages will receive taxes at nearly 30% of the actual value of the product. Now the only positive thing here is that this tax could replace any other present tariff. In this manner, clients don’t need to face any kind of double whammy ordeal if Trump rolls out the 54% on China’s imports beginning next week.
Trump worked long and hard to suspend this de minimis exemption in February, but as per the White House, the efforts were put on hold after this policy resulted in chaos. Some impacts include the US Postal Service stopping shipments abruptly from China as it rushed to collect taxes on various packages.
So after giving the shipping industry so much time to prepare, it’s now ready to reinstate these orders. They will be collecting tariff revenue for all goods from the PRC. As of right now, Temu has failed to respond to any kind of request for comments. What we can confirm is how it might impact clients the most who cannot run far from Trump’s tariffs.
The reciprocal tariff plan targets so many nations, including the likes of India, Malaysia, Vietnam, and Taiwan. In addition, he chose to place another mega 34% tax on imports arising from China. Therefore, there is one thing he’s exempted from this policy, and that’s semiconductors. But the question right now is until when.
Many keep wondering if this signals the end of Americans purchasing China’s famous products, thanks to the low costs and great quality associated with them. From what we’re seeing, that might be the case as these taxes will surely raise prices.
Read next: TikTok Expands EU Data Centers, Strengthens Privacy Compliance While Navigating Fines and U.S. Uncertainty
