Investing.com -- President Donald Trump has confirmed that the duty-free exception for low-value packages originating from China will be upheld. This policy will remain in place until systems capable of fully and swiftly processing and collecting tariff revenue are established. This move formalizes a temporary relief for retailers such as Alibaba (NYSE:BABA) Group Holding Ltd. and JD (NASDAQ:JD).com Inc.
The decision is part of a new 10% tariff on Chinese goods. Previously, Trump had repealed a "de minimis" rule, which permitted small packages valued under $800 to enter the U.S. without duties. This exemption had facilitated the swift expansion of online retailers like Shein and PDD Holdings Inc.’s Temu, who were able to ship inexpensive goods directly to U.S. consumers, bypassing tariffs.
The abrupt policy change, however, sparked questions regarding the collection of tariffs. Under the revised order, the U.S. will continue to uphold the de minimis exception until the Secretary of Commerce informs Trump that a system to levy the taxes is operational. Earlier this week, the postal service announced that it was working on establishing an efficient collection mechanism.
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