Us Revokes Duty-free Privileges For Low-cost Chinese Imports

The United States on Friday formally scrapped a long-standing tariff exemption for Chinese goods worth less than 800, striking a blow to budget-friendly online retailers like Shein and Temu that have built their empires on shipping inexpensive items directly to American consumers.

The policy shift, previously announced by the White House, came into effect at the end of the week. Authorities framed it as part of a broader effort to stem the flow of illicit synthetic opioids into the country, claiming the duty-free loophole had been exploited.

From now on, low-value commercial shipments from China will face hefty tariffs of 145 percent - a level consistent with existing levies on Chinese goods. Deliveries through the US Postal Service will incur duties amounting to 120 percent of their declared value, or a flat 100 fee, which is set to double to 200 next month.

The end of the de minimis exemption, which previously allowed goods under 800 to enter the US without tariffs, could dramatically reshape the economics of Chinese e-commerce exports. Gregory Daco, chief economist at EY, warned in a client note that the new rules would compress already slim profit margins and raise prices for consumers.

The development is the latest escalation in a trade conflict between Washington and Beijing, with both sides exchanging rounds of tariffs. The US recently imposed 25 percent duties on key Chinese sectors such as automobiles, steel, and aluminum. In retaliation, China slapped sweeping 125 percent tariffs on American imports.