[KALE CAREY]
GLOBAL SHIPMENT COMPANY D-H-L EXPRESS SAID IT’S SUSPENDING ALL SHIPMENTS OF MORE THAN 800 DOLLARS FOR AMERICAN CUSTOMERS, INCLUDING FROM HONG KONG, EFFECTIVE MONDAY APRIL 21.
THE ANNOUNCEMENT COMES IN RESPONSE TO RECENTLY IMPLEMENTED U-S CUSTOMS RULES REQUIRING FORMAL ENTRY PROCESSING FOR ALL SHIPMENTS VALUED AT MORE THAN 800 DOLLARS. IT WAS ANNOUNCED EARLY THIS MONTH BY THE TRUMP ADMINISTRATION. PRIOR TO THE CHANGE, THE MINIMUM FOR SHIPMENTS WAS 25-HUNDRED DOLLARS.
D-H-L SAYS BUSINESS-TO-BUSINESS SHIPMENTS WILL CONTINUE, BUT MAY FACE DELAYS. IT ADDED THAT SHIPMENTS TO BUSINESS OR CUSTOMERS WORTH LESS THAN 800 DOLLARS WILL NOT BE IMPACTED.
THE MOVE COMES AS STRAIGHT ARROW NEWS RECENTLY REPORTED, THE TRUMP ADMINISTRATION CLOSED A LOOPHOLE WITH NEW TARIFFS, WHICH ALLOWED MANY CHINESE COMPANIES TO SHIP CHEAP ITEMS INTO THE U.S. THROUGH WHAT’S BEEN DUBBED THE “DE MINIMIS” EXEMPTION.
THE LOOPHOLE ALLOWS COMPANIES LIKE SHEIN AND TEMU TO SHIP ITEMS WORTH LESS THAN 800 DOLLARS TO MAINTAIN LOW PRICES FOR CONSUMERS. MORE THAN A BILLION PACKAGES USED THIS EXEMPTION LAST YEAR, DOUBLING FIGURES FROM 2022, ACCORDING TO U.S. OFFICIALS.
PRESIDENT DONALD TRUMP IS SET TO IMPOSE A 90 PERCENT TARIFF RATE ON THESE SHIPMENTS, TRIPLE HIS INITIAL RATE OF 30 PERCENT. BEGINNING MAY 2ND, CHINA WILL BE SUBJECT TO THESE DUTIES ON ITEMS VALUED AT OR BELOW 800 DOLLARS.
D-H-L’S SHIPMENT PAUSE COMES AS THE U-S AND CHINA REMAIN IN A TRADE DISPUTE IN WHICH THE TRUMP ADMINISTRATION IMPOSED TARIFFS OF UP TO 245 PERCENT ON CHINESE IMPORTS. BEIJING IMPOSED HEFTY RECIPROCAL TARIFFS IN RESPONSE.
ECONOMISTS WARNED THE ONGOING TRADE WAR BETWEEN THE WORLD’S TWO LARGEST ECONOMIES COULD LEAD TO GLOBAL DISRUPTIONS FOR CUSTOMERS AND INCREASES THE RISK OF A RECESSION IN THE U.S., AS WELL AS LIMITING CHOICES FOR CUSTOMERS.
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