As Tariffs Go Live, New Ruling Threatens E-Commerce
Trump’s much publicised global tariff hikes have now all gone live, while overseas e-commerce within the US is threatened by another ruling coming in May.
60 countries were due to receive more than the baseline tariff hike, but all except China will receive the 10% for the next 90 days. China is now subject to an incredible 125% rate after introducing retaliatory tariffs following Trump’s original announcement. While China have applied an 84% levy to American products,
Last week, the president also confirmed the removal of the ‘de minimis’ exemption for shipments arriving from Hong Kong and China mainland. This adjustment is set to be effective from May 2nd and will significantly impact e-commerce shipments.
Under the current exemption, shipments with a value of less than $800 can be imported duty free. Trump attempted to cancel this rule in February, but neither the US Postal Service or US Customs could manage the duty collections.
Following a government instruction to both parties to find solutions by 1st April, it appears one has been found.
Around 1.3 billion shipments arrived in the US under ‘de minimis’ last year, with the majority coming from Chinese e-commerce suppliers like Shein and Temu.
While the rule has only currently been removed for China and Hong Kong, there are fears that this could be extended to further countries, perhaps including the UK, in the coming weeks or months.
As ever, Atlantic Pacific is monitoring developments closely.
