JD.com expands in Europe as tariffs bite

JD.com (9618) said it is expanding its business in Europe as China's online retailers braced for massive new US tariffs on small packages exported from the mainland.

At an anniversary party on Wednesday, the Chinese e-commerce giant said it has launched a business focusing on overseas brands in the mother, baby and toy categories, and has invited merchants to the platform.

The company also said it has been testing its European online retail brand -- Joybuy - in the London area.

Earlier, US President Donald Trump tripled tariffs on small parcels exported from the mainland and Hong Kong which were once exempt from duties, amid the escalating trade war between the United States and China.

The move came a week after Trump closed a trade loophole known as "de minimis" that allowed low-value packages from China and Hong Kong to enter the United States free of duties, ordering that imported goods priced up to US$800 (HK$6,240) be taxed at a rate of either 30 percent of their value or US$25 per item, effective May 2, with that rate increasing to US$50 per item after June 1.

But in the latest executive order on Wednesday, Trump tripled the rates, with the US taxing low-value packages at the rate of 90 percent of their value, or US$75 per item starting May 2 and US$150 after June 1.

STAFF REPORTER AND REUTERS