US President Donald Trump signed an executive order revoking a global tariff exemption that allowed low-cost goods from around the world to enter the US without paying tariffs. The new rule takes effect on August 29, broadening a ban introduced earlier targeting Chinese and Hong Kong products.
The exemption had exempted goods valued at $800 or less from duties, benefiting online shoppers who bought cheap clothing and household items from sites like Shein and Temu. However, the White House claims it was being exploited to “funnel deadly synthetic opioids” into the US.
Trump used emergency powers to accelerate the deadline set by Congress, aiming to prevent this abuse while saving American lives and businesses. The new rule applies a tariff rate of 15% to all goods, regardless of country of origin.
The exemption does not affect personal items carried from foreign travel worth $200 or less, nor gifts valued at $100 or less. Canadians and Mexicans had relied on the exemption for low-cost goods, but it’s no longer in effect.
This move comes after a bill passed by Congress aimed to end the exemption for all countries. Trump’s action takes advantage of the emergency powers to address national emergencies and prevent illicit activities.
Source: https://www.bbc.com/news/articles/c939q47xlleo