US President Donald Trump has lifted tariffs on small packages from China, rescinding his abrupt directive that had eliminated duty-free treatment for shipments valued at less than $800, leading to a scramble for compliance by the US postal service and other agencies.
Following the order, the postal service briefly halted acceptance of packages from China, but reversed this decision within a day. The resulting confusion left many in the US uncertain about the status of orders from companies like Shein and Temu, which had leveraged the exemption for lower-value packages to rapidly expand in the US.
Trump initiated this change last weekend as part of a broader decision to raise border taxes on Chinese goods by 10% on February 4. He revised the order on Friday, stating that duty-free treatment for packages from China valued under $800 would continue until "adequate systems are in place to fully and expediently process and collect tariff revenue."
This move coincides with other swift changes Trump has announced since assuming office last month, some of which have encountered obstacles, including legal challenges. Last weekend, he initially imposed 25% tariffs on goods from Mexico and Canada, but promptly suspended these duties for a month to facilitate ongoing negotiations.
Trump also hinted at announcing "reciprocal tariffs" on numerous countries next week, a concept he had proposed during his campaign in which the US would levy tariffs mirroring those of other countries on equivalent American products.
The reconsideration of the exemption for low-value packages, known as de minimis, had begun before Trump's presidency. In September, the Biden administration suggested tightening regulations on such packages from China to boost US firms' competitiveness and address issues hindering the shipment of illicit drugs.
In 2016, the US had raised the exemption threshold from $200 to $800 to streamline trade processes and enable officials to prioritize critical shipments. However, this decision has faced backlash as e-commerce has expanded rapidly, leading to a surge in packages entering the US below the $800 limit, from 140 million to over 1.3 billion last year.