Donald Trump closed a loophole, making low-value parcels like clothing now subject to taxes. The US Postal Service (USPS) announced it has temporarily stopped accepting parcels from mainland China and Hong Kong. Letters, however, remain unaffected. The USPS did not provide an official reason for the suspension.
On Tuesday, new regulations came into effect, closing a previous loophole. Small packages valued at $800 or less were previously tax-free when sent to the US. President Trump’s new measure imposes additional taxes, including a 10% tariff on all imported goods from China.
The “de minimis” tax exemption has faced growing scrutiny. Chinese e-commerce giants like Shein and Temu used this exemption to access millions of US consumers. Though changes to this tax exemption began under President Joe Biden, Trump’s latest announcement extended tariffs to all Chinese imports, including clothing and toys.
In response, China plans to impose tariffs on some US imports. Starting February 10, coal and liquefied natural gas (LNG) will face a 15% tariff. Crude oil, agricultural machinery, and large-engine vehicles will be taxed at 10%.
Nick Stowe, CEO of Monsoon & Accessorize, told the BBC he supports changes to the US de minimis rule. He believes Chinese retailers exploited it, undercutting rivals in markets worldwide. He claimed major companies like Shein built large-scale businesses without paying proper customs duties.
US President Donald Trump is expected to speak with Chinese President Xi Jinping soon. Trade expert Deborah Elms highlighted the impact of these tariff changes. Goods previously shipped directly through Chinese e-commerce to the US will face stricter taxation.
A 2023 US Congress report revealed that nearly half of parcels entering the US through de minimis exemptions originated from China. Officials emphasized the difficulty of screening this high volume of incoming parcels for illegal items.
