U.S. President Donald Trump announced on the 2nd (local time) the introduction of mutual tariffs targeting the whole world, stating that the tax exemption for small parcels originating from China would be eliminated. As a result, Chinese e-commerce companies that have been targeting the U.S. market with ultra-low-priced products are expected to suffer a significant blow.
On the same day, according to Reuters and AFP, President Trump signed an executive order to abolish the 'de minimis' exemption for imports valued at $800 (approximately 1.17 million won) or less from China. The executive order will take effect at 12:01 a.m. on the 2nd of next month.
From this point on, a tariff of 25% per item or 30% of the product's value will be imposed on all goods valued at $800 or less coming into the U.S. from China and Hong Kong.
Previously, on Feb. 4, the U.S. blocked the importation of international parcels from China and Hong Kong, but reversed its decision within a day when a logistics crisis occurred. According to U.S. authorities, U.S. Customs handles an average of over 4 million tax-exempt parcels per day. For 2024, the volume of tax-exempt parcels is estimated to exceed 1.4 billion, with 60% of them identified as originating from China.
The so-called Chinese e-commerce companies known as 'Altesh,' including Ali, Temu, and Shein, have rapidly grown in the global market by supplying ultra-low-priced products in a situation where household consumption power has decreased globally due to rising prices.
This measure is interpreted not only as an attempt to close the trade loopholes utilized by these companies but also as a commitment to blocking the illegal distribution of Chinese drugs. Previously, President Trump emphasized China's responsibility, stating that precursors for fentanyl and other drugs are produced in China and supplied to U.S. markets by Mexican drug cartels.
Although Chinese authorities deny this, it has been reported by Reuters that drug traffickers are exploiting the tax exemption system to import chemical precursors.