Trump tariffs target loophole used by Chinese online retailers [Video]

US President Donald Trump’s new trade levies against China, Canada and Mexico include a broadside against e-commerce, with apparent plans to extinguish a long-held tariff exemption for packages worth less than US$800 (S$1,100).

Mr Trump’s executive orders directing 25 per cent levies on Canada and Mexico – plus a 10 per cent duty on China – specify that the “de minimis” exemption for small packages no longer applies.

Under the exemption, products below that dollar amount are able to enter the US without tariffs – a boon for China’s e-commerce retailers, who ship often cheaper wares directly to consumers in the US.

The full scope of the de minimis changes – whether they apply just to the new tariffs issued on Feb 1 or to older existing trade levies – was not clear. A White House spokesman did not respond to questions about its reach. 

However, trade lawyers said Mr Trump’s language cracking down on the de minimis exemption …