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Trump closes tax-exempt loophole for all Chinese imports

  • On May 2, 2025, the Trump administration terminated the duty-free allowance for small-value shipments coming from China to the U.S., introducing additional tariffs and more complex customs procedures.
  • This action responds to concerns that the exemption allowed millions of low-value Chinese parcels daily to enter without tariffs, harming U.S. Manufacturers facing a 25% to 35% sales drop last year.
  • The new rules impose a 145% tariff on Chinese goods, requiring complex customs declarations and payments which commercial carriers like UPS and FedEx will collect, causing expected price increases and delivery delays.
  • Heather Mason from the National Bike Dealers' Association highlighted that well-known brands adhere to rigorous safety and quality guidelines, unlike cheaper imitation imports that often lack warranties and pose safety concerns. Severini emphasized the importance of implementing duties to ensure competition is fair for all parties involved.
  • As companies dependent on Chinese manufacturing adapt to new trade measures, some American producers might benefit from reduced competition, but shoppers should anticipate increased costs and longer wait times due to the escalating U.S.-China trade conflict.
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The Future of Customer Engagement and Experience broke the news in on Wednesday, April 30, 2025.
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