The Trump administration announced a significant increase in tariffs on low-value packages from China and Hong Kong on Thursday, marking a major escalation in its trade policy. Starting May 2, all shipments valued under US$800 will be subject to either a 120% tariff on the declared value or a flat fee of US$100 per parcel - a substantial jump from the previously proposed 90% tariff or US$75 per item.
The measures became even more stringent on June 1, when the flat fee rose to US$200 per package. This follows President Trump's April 2 executive order that revoked the long-standing "de minimis" duty-free treatment for such shipments from China and Hong Kong.
Hong Kong authorities strongly criticized the move, with a government spokesperson calling it "an unreasonable act of trade bullying that disrupts global supply chains." The Hong Kong Post confirmed it would not collect these tariffs on behalf of the US and announced impending suspensions of US-bound mail services, with details to be released soon.
Industry groups, including China Express Association, joined the chorus of disapproval. They warned the policy would particularly hurt American consumers who rely on affordable cross-border e-commerce, potentially increasing their costs by 15-30% and causing significant delivery delays.
The US$800 de minimis threshold, established in 2016, had allowed millions of small packages from China to enter the US duty-free each year. Experts suggest the new tariffs could force major e-commerce platforms to restructure their supply chains while overwhelming US Customs with hundreds of millions of additional tariff assessments annually.
As tensions escalate, China's Commerce Ministry has hinted at forthcoming countermeasures, potentially opening a new front in the ongoing US-China trade dispute focused on small parcel deliveries rather than traditional bulk shipments.
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