Trump signs order suspending duty-free treatment for ‘low-value’ shipments

U.S. President Donald Trump signed an Executive Order suspending duty-free de minimis treatment for “low-value” shipments. The president claims the order closes a loophole used to” evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States.” Effective August 29, imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties. For goods shipped through the international postal system, packages will instead be assessed duties according to one of the following methodologies: Ad valorem duty: A duty equal to the effective tariff rate imposed under the International Emergency Economic Powers Act that is applicable to the country of origin of the product. This duty shall be assessed on the value of each package. Specific duty: A duty ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product. The specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology. Publicly traded foreign companies that sell lower-cost consumer goods to the U.S. include Alibaba (BABA) and PDD (PDD).