Trump Tariffs Take Flight: U.S. Ends Duty-Free Imports from China and Hong Kong

The Trump administration reinstates tariffs on low-value imports from China and Hong Kong, affecting e-commerce and illicit goods shipments. The move aims to tackle the unscreened entry of fentanyl into the U.S. as Customs and Border Protection prepares to enforce hefty tariffs, raising concerns over logistical bottlenecks.

The Trump administration has reinstated tariffs on low-value imports from China and Hong Kong, terminating duty-free access for certain shipments. This strategic move aims to control the inflow of illicit goods like fentanyl into the United States.

Customs and Border Protection (CBP) is gearing up to manage the enforcement of these tariffs. While the new orders are set to restore screening measures suspended earlier this year, they come with significant implications for e-commerce companies such as Shein and Temu, which have benefitted from earlier exemptions.

Express shippers like FedEx, UPS, and DHL will now handle these shipments, but the logistics industry fears a wave of chaos at ports and airports as operators grapple with new duty collection obligations. As the U.S. Postal Service shifts collection practices to airlines, experts raise concerns about the preparedness for this transition.

(With inputs from agencies.)