Trump raises duty on small parcels from China to 90%

Pistachios imported from the United States is seen at a supermarket in Beijing. Chinese consumers in Beijing mulled their their spending habits and said they are prepared to forego American brands if that means avoiding the pinch from the escalating trade war with Washington. (Photo by JADE GAO / AFP)

WASHINGTON, United States – US President Donald Trump has signed an executive order raising duties on small packages sent from China from 30 to 90 percent, a move likely to disrupt the import of popular low-cost products.

Trump raised the duty on “low-value imports” from China, due to go into effect from May 2, alongside a major increase in tariffs imposed on Chinese goods, from 34 to 84 percent, according to the White House order released Tuesday.

Trump signed an order last week canceling the duty-free exemption for goods from China valued at $800 or below.

READ: Trump ends tax exemption for low-value Chinese imports

The rule has faced heavy scrutiny as US officials pointed to the growth of Chinese-founded online retailers Shein and Temu as a factor behind a surge of shipments using the exemption in recent years.

The White House said last week that products imported under the exemption from China would be subject to a duty rate of either 30 percent of their value or $25 per item, increasing to $50 per item after June 1.

But now Washington will increase the rate further, to 90 percent, and raise the per item rate to $75 from May 2, and $150 from June 1.

In February, Trump had already scrapped the customs exemption but reversed his decision after the move caused major logistical disruptions.

China at the time responded with fury to the move, accusing the United States of “politicizing trade and economic issues and using them as tools.”