President Trump on Wednesday signed an executive order suspending what's known as a de minimis exemption allowing low-value parcels that are shipped to the United States to avoid tariffs.
The White House said it's closing what it called a "catastrophic loophole" that shippers use to "evade tariffs and funnel deadly synthetic opioids or below-market products" into the U.S. The order goes into effect Aug. 29.
The exemption had applied to parcels valued at $800 or less, and allowed overseas retailers to ship inexpensive goods to consumers in the U.S. tax-free.
Mr. Trump in May ended the de minimis loophole for imports from China and Hong Kong, which had allowed retailers like Shein and Temu to ship ultra low-cost apparel and other goods to U.S.-based consumers at bargain-basement prices.
The de minimis provision, which was added to the Tariff Act of 1930 several years after that law's passage, was intended to facilitate trade by eliminating the administrative burden of collecting modest import duties on low-cost goods.
—This is a breaking news story and will be updated.
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Megan Cerullo