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United States President Donald Trump on Wednesday applied tariffs to low-value imports from all trading partners, a change that could raise costs for American travelers bringing goods into the U.S. after travels abroad.
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The move, made in an executive order, will become effective on Aug. 29 and apply to all goods valued at or under US$800 that previously qualified for the tax-free treatment, according to a White House fact sheet.
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Trump’s order effectively suspends the so-called de minimis exemption for tariffs on small-value packages, applying fresh duties to online retailers that ship directly to U.S. consumers.
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Packages entering the U.S. have long qualified for the exemption, which has been a boon for companies abroad such as discount retailers Temu and Shein Group Ltd. that ship low-cost clothing, household goods and other items directly to American consumers.
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The administration is maintaining exemptions allowing U.S. travelers to bring back as much as US$200 in personal items and permitting individuals to continue receiving “bona fide gifts” valued at US$100 or less duty-free. But the change will apply to “any shipment of articles” regardless of their value, country of origin, mode of transportation or method of entry, Trump said in his executive order.
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The White House cast the measure as closing “a catastrophic loophole used to, among other things, evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products” into the country. The Trump administration has accused Chinese companies of abusing the tariff exemption to ship illegal fentanyl and precursor chemicals into the U.S.
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Wednesday’s order is the latest pivot from the Trump administration on how to apply tariffs to low-value packages.
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Trump initially moved to suspend the de minimis rule for China and Hong Kong within days of taking office though his administration was forced to make a brief but hasty retreat, suspending the change as the U.S. Postal Service grappled with how to implement the policy. Trump effectively reimposed the policy change for low-value packages from China and Hong Kong on May 2.
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That decision that is being challenged in court. On Monday, the Court of International Trade declined an effort to restore that more favorable tax treatment for Chinese goods.
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The president’s Wednesday order comes ahead of an Aug. 1 deadline when a slew of country-based tariffs are slated to take effect on dozens of trading partners.
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