Trump Boosts Tariffs on Low-Value Packages Again After China Retaliates

President Donald Trump increased the previously announced tariffs on low-value packages from China after that country retaliated against the U.S. by boosting its tariffs on U.S. goods.

In an executive order issued Wednesday (April 9), Trump increased the tariffs on small parcels that he imposed Tuesday (April 8).

Beginning May 2, shipments priced up to $800 will be charged duties of 120% of their value. That’s up from the 90% duty announced Tuesday, according to the order.

Between May 2 and June 1, there will also be a per postal item duty on goods of $100. After June 1, the duty will be $200. Those figures are up from the $75 and $150, respectively, that were announced Tuesday, per the order.

Trump announced the increased tariffs on China in a Wednesday post on Truth Social in which he also said he imposed a 125% tariff on other goods from China while ordering a pause to reciprocal tariffs on 75 countries after those countries contacted representatives of the U.S. to negotiate a solution to trade issues.

“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump said in the post. “At some point, hopefully in the near future, China will realize that days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

It was reported Wednesday, before these increases were announced, that the new tariffs on low-value packages from China could hinder the plans of eCommerce retailers like Shein and Temu, which have been able to compete by offering cheap products and avoiding import duties.

Before Trump closed the loophole, Chinese imports under the “de minimis” threshold of $800 were allowed to arrive duty-free.

Analysts said the closing of the de minimis loophole will upend the business models of cheap retail platforms while also slowing deliveries.

On Tuesday (April 8), it was reported that China opposed Shein’s plans to move some production outside the country as a way to avoid the U.S. tariffs.