The US will terminate the tax-free treatment for small packages from mainland China and Hong Kong on May 2, 2025.

According to the White House website, after the US Commerce Secretary notified that sufficient systems have been established to collect tariff revenues, US President Trump signed an executive order. Starting at 12:01 a.m. EDT on May 2, 2025, the tax-free treatment for small imported goods from mainland China and Hong Kong will be canceled.

According to the order, starting May 2, import goods sent through means other than the international postal network with a value of $800 or less that qualify for the de minimis exemption will need to pay all applicable tariffs and follow the applicable entry and payment procedures; all related mail containing goods valued at $800 or less and sent via the international postal network that meet the de minimis exemption criteria will need to pay a tariff of 30% of their value or $25 per item "increasing to $50 per item as of June 1, 2025," which will replace any other tariffs, including those specified in previous orders.

The order states that carriers of these parcels must report shipping details to US Customs and Border Protection (CBP), maintain carrier bonds to ensure tariff payments, and remit the tariffs to CBP according to the prescribed schedule. CBP may require any mailed parcel to be formally declared instead of enforcing specific tariffs.

The US Commerce Secretary will submit a report within 90 days assessing the impact of this order and considering whether to extend these regulations to parcels from Macao, China.

The White House stated that Trump's move targets deceptive shipping practices by Chinese shippers, many of whom hide illegal substances, including synthetic opioids, in small packages to take advantage of the "de minimis exemption."

Trump previously signed an executive order on February 1 canceling the "de minimis" tariff exemption for small goods valued below $800 from the US, which took effect on February 4. On February 5, the US Postal Service announced it would stop accepting parcels from mainland China and Hong Kong but withdrew the announcement later that same day. On February 7, the US reinstated the "de minimis" tax exemption threshold for small parcels from China valued below $800 until "sufficient systems are established to fully and promptly process and collect tariff revenues." It was reported that President Trump signed this executive order just five days after canceling this tax exemption on February 1.

In response to the US side using the fentanyl issue as an excuse to create trade friction with China, Chinese Foreign Ministry spokespersons have repeatedly stated that fentanyl is an American problem. Out of humanitarian spirit, China has supported the US in addressing the fentanyl issue. The US side, using the fentanyl issue, insists on imposing tariff pressure and extortion, acting unilaterally and ingratiatingly, which cannot address its own concerns but will only backfire, severely impacting dialogue and cooperation in the field of drug control between the two countries. The spokesperson also noted that there are no winners in trade wars or tariff wars, and coercive threats will not work against China. China urges the US to correct its erroneous actions and resolve respective concerns through equal consultations, promoting stable, healthy, and sustainable development of Sino-US relations.

Source: https://www.toutiao.com/article/1828347779718154/

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