The Tariff Was Reduced From 120% To 54%, And The Era Of Small Package Tax Exemption Ended?

　　 On April 2 this year, Trump also signed an executive order when announcing the "reciprocal tariff", announcing that the "small tax exemption" policy (T86 model) will be officially cancelled on May 2. The administrative order pointed out that all goods related mail sent through the international postal network with a value of 800 dollars or less and meeting the minimum exemption conditions should pay a tariff of 30% of its value or 25 dollars per piece (increased to 50 dollars per piece after June 1, 2025). The scope of tax increase covers the main export categories such as electronics, machinery and textiles. The repeal of T86 will directly affect the cost structure of China's cross-border e-commerce and logistics enterprises.

　　 In the following eight days, the Trump government raised taxes on small parcels in China and Hong Kong three times. From May 2, the tariff soared to 120% or $100 per piece. After June, the cost of inbound parcels doubled to $200. After the revocation of tariff exemption, the tax rate jumped 30% → 90% → 120% for three consecutive times.

　　 This is a major challenge for the domestic cross-border e-commerce industry. In particular, cross-border e-commerce sellers who rely on the small package direct mail model will have to completely change their business models.

　　 However, on May 12 local time, the official website of the White House of the United States issued an executive order that the ad valorem tariff rate of small packages worth less than $800 was reduced from 120% to 54%. Maintain a specific tariff of $100 per small postal item.

　　 At the same time, the original plan to increase the specific tariff of small postal articles from $100 to $200 on June 1 was rescinded.

　　 The above adjustments are applicable to all goods entering the customs territory of the United States from mainland China, Hong Kong and Macao, China, for consumption, or goods withdrawn from warehouses for consumption.

Recent changes in US import tariff policy on small parcels to China

　　 What is the quota tax? The reporter of Textile and Garment Weekly learned from the data that the quota tax is a tariff levied at a fixed amount on imported small parcels. For example, a Chinese merchant exports a small package worth 500 dollars to the United States. According to the current policy of the United States, from May 14, 2025, the tariff calculation method is ad valorem tariff plus quota tax, that is, 500 × 54%+100=370 dollars. The $100 here is the quota tax. No matter what the commodity in the small package is and how much the value changes, as long as it is within the scope of the small package specified in the policy, the additional $100 fixed tax will be levied.

　　 It can be seen that although the ad valorem tax was lower than the previous 120%, the tariff still increased significantly compared with the duty-free treatment of small parcels imported from mainland China and Hong Kong.

　　 The China Textile Industry Federation had previously issued a statement on the cancellation of small parcels, believing that this seriously violated international trade rules, not only undermined the normal trade order of the textile industry between China and the United States, but also had a negative impact on Chinese textile and clothing enterprises, especially small and medium-sized enterprises, cross-border e-commerce operators and the matching industry chain, and would directly harm the interests of many ordinary consumers in the United States, Damage the fairness and efficiency of the international market.

　　 He Yong, the spokesman of the Ministry of Commerce, said earlier that cross-border e-commerce has the unique advantages of high efficiency, fast delivery and low cost, which can better meet the personalized and diversified consumption needs of consumers. It is an important trend in the innovative development of international trade and has become an indispensable way of life for people, It will seriously affect the interests of American consumers.

　　 The reporter saw on the Internet that the price of commodities on Temu has generally increased by 40% to 100%, and the cultural shirt, which was originally $2, has increased to $5, and the price of Chinese commodities on Amazon has also increased. Low income families have already relied on these low-cost goods, but now they can only switch to more expensive local brands, or simply do not buy them. A mother living in the Midwest said, "I used to buy Halloween clothes for my children, but now I can't even afford stickers."

　　 Enterprises are also having a hard time. Temu and Shein quickly adjusted their strategies, accelerated the construction of local warehouses in the United States, and tried to bypass tariffs, but the logistics costs still went up. Some small and medium-sized enterprises withdraw from the US market directly because their profits are too thin to bear tariffs. The American Chamber of Commerce warned that if this continues, American shelves may be "empty".

　　 The China US trade talks in Geneva issued a joint statement agreeing to significantly reduce the tariffs imposed "for 90 days".

　　 A "90 day suspension period" has been set, during which consultations will continue to be held to determine whether the "24% tariff" will be imposed. In the short term, it is good, but the overall situation, the risk of secondary levy still exists. For investors, it is enough to fully enjoy the short-term "dividends" brought by this wave of style switching, but more importantly, they should be fully prepared for the game of structural differences.

　　 One seller said that the 90 day "cooling period" was crucial, and sellers should prepare in advance. "Although the tariff has dropped at present, it is unknown whether there will be new changes in tariff policy after the 90 day relaxation period. In the future, this period of time may usher in a wave of shipments, after all, the subsequent Amazon membership day will usher, and sellers should make good planning in terms of both supply side and freight forwarding."

　　 Of course, we should also see that this tariff adjustment is of great significance to Sino US trade. On the one hand, reducing the ad valorem tariff rate of small parcel goods will help reduce cross-border logistics costs and promote the circulation of goods between China and the United States. On the other hand, the abolition of the provisions on raising the specific tariff ceiling is conducive to stabilizing China US trade expectations and enhancing the confidence of enterprises of both sides.