In a dramatic escalation of his trade offensive, US President Donald Trump has signed a new executive order increasing duties on low-cost imports from China to a staggering 90%, a move set to shake up the flow of inexpensive consumer goods into the United States.
Effective on May 2, the new order will apply to small packages - often valued under $800 - that previously entered the country duty-free. The latest policy targets the booming volume of shipments from Chinese online retailers such as Shein and Temu, which have used this exemption to flood the US market with cheap products.
According to the White House, items imported under the so-called de minimis threshold will now face either a 90% duty or a flat charge of $75 per item, which will rise further to $150 starting June 1.
This move follows Trump’s earlier decision last week to eliminate the $800 duty-free allowance for Chinese imports altogether. At that time, the administration had planned to implement a 30% duty or $25 per item, rising to $50 by June. But the newly announced figures represent a sharp increase in both percentage-based and fixed-rate duties.
The decision also comes as part of a broader tariff hike on Chinese goods, with rates jumping from 34% to 84%, signaling a renewed hardline stance on trade.
Notably, Trump had initially attempted to remove the customs exemption back in February but reversed course following widespread logistical problems. The latest shift suggests the administration is willing to accept disruption in order to curb China’s growing dominance in the low-cost retail sector.
Beijing has already expressed outrage at the decision, accusing the US of weaponising trade and economic policy for political ends.