U.S. consumers to feel pinch as duty-free treatment for cheap parcels from China ends

U.S. consumers will see higher prices and slower deliveries after Friday's expiration of a duty-free treatment for Chinese imports under 800 U.S. dollars, known as the de minimis threshold.

According to an executive order signed by President Donald Trump on April 2, starting from Friday (May 2), imported goods from China entering the U.S. through means outside the international postal network, which are valued at or under 800 U.S. dollars and would otherwise qualify for the de minimis exemption, will be subject to all applicable duties, which should be paid in accordance with applicable entry and payment procedures.

The order also leaves all relevant postal items containing goods from China sent through the international postal network, which are valued at or under 800 dollars and would otherwise qualify for the de minimis exemption, subject to a duty rate of either 30 percent of their value or 25 dollars per item (increasing to 50 dollars per item after June 1). It adds that this is in lieu of any other duties, including those imposed by prior orders.

It's estimated that the U.S. receives nearly four million low-value packages every day, most of which come from China. According to a report from the Congressional Research Services of the United States, low-value packages from China have skyrocketed from 5.3 billion dollars in 2018 to 66 billion dollars in 2023.

In response, the Chinese Ministry of Commerce has stated that the U.S. adjustment on its tariff policy on low-value imports is destructive and will seriously affect the interests of American consumers.

The ministry said that any adjustment to cross-border e-commerce should aim to bring more convenience to consumers.

The de minimis provision, which was introduced in 1938 for shipments of five U.S. dollars or less, allows low-value parcels to enter the U.S. tax free. In 2016, that threshold was increased to 800 dollars.

The policy was intended to reduce the administrative burden for U.S. customs, speed up e-commerce flow for both retailers and consumers, and encourage cross-border trade by lowering barriers for cheaper items.

Yemenis took to the streets on Friday in Al-Sabeen Square in the capital, Sanaa, as well as in other areas under Houthi control, to express solidarity with Iran and Lebanon.

The demonstrations were held to protest ongoing military operations by the United States and Israel against the two countries.

Houthi leader Abdul-Malik al-Houthi reiterated on Friday that his forces will stand firmly with Iran. He stressed that the group is ready to take action should the situation require it.

Officials from the group stood behind those remarks while attending the demonstrations.

"As our leader said, we should observe and monitor, and move the situation, with our hands already on the trigger, in the sense that we are ready for any new situation, for any emergency and for what the situation calls us, because we are ready," said Houthi official Ali Al-Dailami.