Mexico to suspend package shipments to US as tariff exemption set to expire

US tariff exemption connected packages worthy $800 oregon little owed to extremity this week.

Mexico says it volition suspend bundle shipments to the United States earlier the extremity of a tariff exemption for small-value packages.

The announcement connected Wednesday follows akin moves by postal services from respective European countries, including Germany, Denmark, Sweden, Italy, and the United Kingdom, arsenic they await  further details from the US government.

The “de minimis” exemption has allowed packages worthy little than $800 to participate the US tariff-free since 2016, but the loophole is acceptable to expire connected Friday.

The alteration is expected to dent the concern of Chinese e-commerce platforms similar Shein and Temu – which person evaded US tariffs by mailing straight to customers – but it has besides created disorder for different US commercialized partners. Mexico said it volition suspend shipments pending much details from Washington astir caller duties.

“Mexico continues its dialog with US authorities and planetary postal organisations to specify mechanisms that volition let for the orderly resumption of services, providing certainty to users and avoiding setbacks successful the transportation of goods,” the authorities said.

Shipping elephantine DHL said “key questions stay unresolved, peculiarly regarding however and by whom customs duties volition beryllium collected successful the future, what further information volition beryllium required, and however the information transmission to the US Customs and Border Protection volition beryllium carried out.”

The White House announced plans to suspend the de minimis exemption for each countries connected July 30, arsenic portion of US President Donald Trump’s wider commercialized war.

The exemption was antecedently suspended for China, Hong Kong, Mexico, and Canada owed to concerns astir the travel of fentanyl and different drugs implicit the US border.

A White House Fact Sheet released connected July 30 said 2 schemes whitethorn beryllium utilized to cipher tariffs for tiny packages.

The archetypal is calculated based connected the worth of the package, portion the 2nd strategy sets a tariff of $80 to $200 per item.

Both rates are based connected the broad tariff acceptable by the Trump medication for astir US commercialized partners successful August, ranging from 10 to 40 percent.

The White House has besides imposed tariffs connected idiosyncratic sectors, specified arsenic semiconductors, alloy and aluminium, vehicles and car parts.

Mexico is inactive negotiating its tariff complaint with the US, and has pledged to rise tariffs connected Chinese goods and instrumentality tougher measures against cause cartels to unafraid a woody with Trump. Some goods, however, volition inactive beryllium covered by the 2020 escaped commercialized US-Mexico-Canada Agreement.

Source:

Al Jazeera and quality agencies