Close Menu
Alpha Leaders
  • Home
  • News
  • Leadership
  • Entrepreneurs
  • Business
  • Living
  • Innovation
  • More
    • Money & Finance
    • Web Stories
    • Global
    • Press Release
What's On
Musk says he’s blocked from South Africa because he’s white. Amazon just moved in

Musk says he’s blocked from South Africa because he’s white. Amazon just moved in

20 July 2026
Dolph Lundgren Open Up About His Kidney Cancer Journey

Dolph Lundgren Open Up About His Kidney Cancer Journey

20 July 2026
The UK is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive’

The UK is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive’

20 July 2026
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Alpha Leaders
newsletter
  • Home
  • News
  • Leadership
  • Entrepreneurs
  • Business
  • Living
  • Innovation
  • More
    • Money & Finance
    • Web Stories
    • Global
    • Press Release
Alpha Leaders
Home » What to Know About Trump’s Latest Changes to Taxes on Small Packages From China
Business

What to Know About Trump’s Latest Changes to Taxes on Small Packages From China

Press RoomBy Press Room14 May 20253 Mins Read
Facebook Twitter Copy Link Pinterest LinkedIn Tumblr Email WhatsApp
What to Know About Trump’s Latest Changes to Taxes on Small Packages From China

Earlier this month, President Trump closed a longstanding loophole that had allowed a flood of inexpensive Chinese goods to be mailed to the United States without any tariffs.

Starting on May 2, those packages faced a tariff of 120 percent or a $100 flat fee.

After the United States and China agreed this week to a temporary truce in trade tensions, that tariff is now 54 percent. The changes, which took effect on Wednesday, were described in a White House executive order and guidance from Customs and Border Protection.

For the past decade, a tax loophole known as the de minimis exemption allowed goods worth up to $800 to enter the United States without import duties. The result was millions of packages shipped from China to the United States, as American shoppers got hooked on buying everything from flash drives to water bottles at low prices.

Chinese companies like Shein and Temu built their businesses around the loophole, sending goods made in Chinese factories directly to American shoppers. At the same time, China pushed its manufacturers to find buyers overseas.

Last year, nearly four million packages a day entered the United States with no customs inspection and no duties paid, angering American businesses that said the loophole made it difficult for them to compete.

Mr. Trump said the loophole had created a pathway for the chemicals involved in making fentanyl to come into the United States from China because of limited checks on these packages.

Under the rules for de minimis shipments, carriers of international mail packages can pay either the 54 percent tariff or the fee of $100 per package. In practice, that means a $10 pair of cargo pants on Shein would be taxed $5.40 if the carrier chose the tariff, but for a package with 25 pairs of cargo pants, it would be cheaper to pay the flat fee. One caveat: Carriers must use the option they choose — either the tariff or the fee — on all packages they ship, and can elect to change only once a month.

In 2023, the average value of a de minimis package was $54, according to the congressional testimony of a U.S. customs official.

It is likely that much of the extra cost resulting from the new tariffs will fall on shoppers. The tariffs on these shipments are also disrupting the economics of global trade.

In Guangzhou, the center of China’s garment industry, factory owners and managers said customers were placing fewer orders because of the higher prices.

Many said the drop in orders and the overall uncertainty generated by trade tensions risked making their businesses unsustainable. Some had closed their doors or hired fewer workers. Others packed up their operations for other provinces or other countries, like Vietnam, in the hope of paying lower wages and lower export duties.

The trade war poses a particular challenge for China, where economic growth has been largely driven by exports in recent years. New orders for export from China dropped in April to their lowest level since the end of 2022, according to official data.

On Monday, the United States and China said they would reduce their respective tariffs for 90 days with they continue negotiations, ending a standoff that had brought to a halt much of the trade between the world’s two largest economies.

China Customs (Tariff) Donald J International Trade and World Market Trump United States
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link

Related Articles

A Chinese Pink Floyd fan is giving Claude and Chat their own DeepSeek moment — an AI model just as good and half the price

A Chinese Pink Floyd fan is giving Claude and Chat their own DeepSeek moment — an AI model just as good and half the price

18 July 2026
Markets experience new DeepSeek shock after MoonShot AI releases Kimi K3

Markets experience new DeepSeek shock after MoonShot AI releases Kimi K3

18 July 2026
Why companies are experimenting with cheaper Chinese AI models instead of OpenAI and Anthropic

Why companies are experimenting with cheaper Chinese AI models instead of OpenAI and Anthropic

17 July 2026
Shipping in the Persian Gulf Nears a Halt and Oil Prices Rise

Shipping in the Persian Gulf Nears a Halt and Oil Prices Rise

17 July 2026
Kevin O’Leary sued for defamation after he claimed China fueled opposition to his Utah data center

Kevin O’Leary sued for defamation after he claimed China fueled opposition to his Utah data center

17 July 2026
Moonshot’s Kimi K3 pushes Chinese AI into Fable-level territory

Moonshot’s Kimi K3 pushes Chinese AI into Fable-level territory

17 July 2026
Don't Miss
Unwrap Christmas Sustainably: How To Handle Gifts You Don’t Want

Unwrap Christmas Sustainably: How To Handle Gifts You Don’t Want

By Press Room27 December 2024

Every year, millions of people unwrap Christmas gifts that they do not love, need, or…

Exclusive: DeFi platform Azura launches after raising .9 million from Initialized

Exclusive: DeFi platform Azura launches after raising $6.9 million from Initialized

22 October 2024
Sam Altman’s World Wants To Scan Your Eyes To Prove You’re Human

Sam Altman’s World Wants To Scan Your Eyes To Prove You’re Human

22 October 2024
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Latest Articles
Prediction markets Swell to 27% of sports bets during World Cup

Prediction markets Swell to 27% of sports bets during World Cup

20 July 20262 Views
2.4 Billion Tonnes Of CO2 At Stake

2.4 Billion Tonnes Of CO2 At Stake

20 July 20262 Views
Markets brace for all-out war in Iran as former NATO commander warns Suez Canal could be next

Markets brace for all-out war in Iran as former NATO commander warns Suez Canal could be next

20 July 20262 Views
Cyber Hygiene In The AI Era—Our First Line Of Digital Defense

Cyber Hygiene In The AI Era—Our First Line Of Digital Defense

20 July 20263 Views

Recent Posts

  • Musk says he’s blocked from South Africa because he’s white. Amazon just moved in
  • Dolph Lundgren Open Up About His Kidney Cancer Journey
  • The UK is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive’
  • Hyperlocal Supply Chains Are Emerging As Hospitality’s Next Big Asset
  • Prediction markets Swell to 27% of sports bets during World Cup

Recent Comments

No comments to show.
About Us
About Us

Alpha Leaders is your one-stop website for the latest Entrepreneurs and Leaders news and updates, follow us now to get the news that matters to you.

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks
Musk says he’s blocked from South Africa because he’s white. Amazon just moved in

Musk says he’s blocked from South Africa because he’s white. Amazon just moved in

20 July 2026
Dolph Lundgren Open Up About His Kidney Cancer Journey

Dolph Lundgren Open Up About His Kidney Cancer Journey

20 July 2026
The UK is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive’

The UK is getting a new prime minister, but bond investors are really in charge and ‘hyper-reactive’

20 July 2026
Most Popular
Hyperlocal Supply Chains Are Emerging As Hospitality’s Next Big Asset

Hyperlocal Supply Chains Are Emerging As Hospitality’s Next Big Asset

20 July 20261 Views
Prediction markets Swell to 27% of sports bets during World Cup

Prediction markets Swell to 27% of sports bets during World Cup

20 July 20262 Views
2.4 Billion Tonnes Of CO2 At Stake

2.4 Billion Tonnes Of CO2 At Stake

20 July 20262 Views

Archives

  • July 2026
  • June 2026
  • May 2026
  • April 2026
  • March 2026
  • February 2026
  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • March 2022
  • January 2021
  • March 2020
  • January 2020

Categories

  • Blog
  • Business
  • Entrepreneurs
  • Global
  • Innovation
  • Leadership
  • Living
  • Money & Finance
  • News
  • Press Release
© 2026 Alpha Leaders. All Rights Reserved.
  • Privacy Policy
  • Terms of use
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.