Washington:
The executive order signed by US President Donald Trump will significantly impact the import of small packages from China. The order raises duties on these packages from 30 to 90 percent, which is expected to disrupt the import of popular low-cost products.
In addition to the duty increase on “low-value imports,” tariffs imposed on Chinese goods will also see a major rise from 34 to 84 percent, as per the White House order released on Tuesday and set to take effect from May 2.
Last week, Trump revoked the duty-free exemption for goods from China valued at $800 or below, a move that has drawn criticism from US officials who have highlighted the surge in shipments using this exemption due to the growth of Chinese-founded online retailers Shein and Temu.
Initially, products imported under the exemption were supposed to be subject to a duty rate of 30 percent of their value or $25 per item, increasing to $50 per item after June 1. However, Washington has now decided to raise the rate to 90 percent and increase the per item rate to $75 from May 2, and $150 from June 1.
While Trump had previously eliminated the customs exemption in February, the decision was later reversed due to logistical disruptions. China had strongly condemned the move at the time, accusing the US of politicizing trade and economic issues.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
