Brisbane-based Apéro Label is halting all orders to United States after the Trump administration moved to close a tax loophole on low-cost goods into America. Until now, products worth less than $US800 ($1,200) were exempt from import taxes when they arrived in the US. But on August 29, this “de minimis” tax exemption, once used by Temu and Shein, is being closed off for all countries, including Australia. Felicity Deane, who is a trade expert at The University of Queensland, believes this could result in fees of US$80 on Australian orders into the US. The White House executive order states the tariff could be the same as the country of origin or $US80 – $US200 per item. Apéro Label co-founder Laz Smith says the company has been struggling to get firm guidance ahead of the de minimis exemption ending, including from Australia Post. Australia Post didn’t answer specific questions from ABC News. It said it was investigating paying duties and taxes through an approved third-party platform provider on behalf of merchants. Those duties and taxes, including a handling fee, would be retrospectively charged back to Australian senders.
Data given to ABC News shows shipping from Australia to the US is dropping as business “uncertainty” about Trump’s tariffs continues. Shippit’s chief executive, Rob Hango-Zada, says on his platform, there’s been a 36 per cent drop in volume since April in terms of outbound shipments from Australia to America.
Australian companies that manufacture in China and ship to distribution centres in the United States are being hit with the same tariff rate as the Asian superpower. The tariffs on Chinese goods have wildly fluctuated since April, with a semi-truce between the two superpowers in May, leaving at just above 40 per cent. US and China are reportedly bargaining for a firm deal, but deadlines on this keep being delayed.
#ABCBusiness
Subscribe:
Read more here:
ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It’s news when you want it, from Australia’s most trusted news organisation.
For more from ABC NEWS, click here:
Watch more ABC NEWS content ad-free on ABC iview:
Go deeper on our ABC NEWS In-depth channel:
Like ABC NEWS on Facebook:
Follow ABC NEWS on Instagram:
Follow ABC NEWS on X (Twitter):
Note: In most cases, our captions are auto-generated.
#ABCNEWS #ABCNEWSAustralia
source