US Ends Trade Exemption That Enabled Flood of Cheap Chinese Goods

Contact Your Elected Officials

U.S. Customs says it processes about 4 million de minimis shipments per day, up from 2.8 million last year.

One second past midnight on May 2, the United States will end a trading policy it says has been exploited by China to flood the U.S. market with cheap goods and smuggle illicit drugs into the country.

President Donald Trump signed an executive order in April to end the de minimis exemption for goods imported from China and Hong Kong as of May 2. The White House called it “a critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids into the U.S.”

The de minimis exemption allows goods valued at $800 or less to enter the United States without being subject to duties and taxes.

Since 2016, shippers from China and elsewhere have imported billions of small packages to the United States under the exemption.

Starting on May 2, the United States will begin collecting a duty of either 30 percent of the value of packages at $800 or less shipped through the international postal network or $25 per item. On June 1, that rate will increase to $50 per package.

Packages valued at $800 or less shipped through means other than the international postal network will be subject to “all applicable duties,” a White House fact sheet states.

Macau, which, like Hong Kong, is considered by China to be a special administrative region, may be added to the list by the end of the summer over concerns that goods could be routed through Macau to circumvent duties.

Trade analysts who spoke with The Epoch Times said the closure of the de minimis exemption to China and Hong Kong will deal a significant blow to online retailers who sell goods through websites such as Amazon but will be especially detrimental to made-in-China retail and fast-fashion giants Shein and Temu.

De Minimis Imports

Since 1938, under Section 321 of the Tariff Act of 1930, the United States has allowed small packages of trivial financial value to be imported into the country duty-free. The original intent of this legislation, Christopher Casey wrote in a January article for the Congressional Research Service, was to avoid wasting government resources to collect an insignificant amount of revenue.

By Austin Alonzo

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Off the radar

In the longstanding and brutal ledger of religious persecution, Nigeria now occupies its own grim chapter with its enduring pogrom against Christians.

If Federal Food Assistance Programs End, Theft Begins

Many patriotic Americans well versed in American History have...

Tucker EN FUEGO: Taking Stock of MAGA, Ten Years on

Draining of the Swamp has yet to come anything close to fruition, as the creatures that populate said Swamp yet cling bitterly to power.

Tylenol’s Headache

When President Trump, RFK Jr., and Dr. Mehmet Oz called for pregnant women to avoid using acetaminophen, Tylenol got the headache.

American Restaurants Are Going Broke

U.S. restaurant bankruptcies surged to 22% in 2020 amid COVID-19 and stayed elevated at 14% last year due to Biden’s “Build Back Better” policy.

TCM Classic Tour at Warner Bros. Studio: Finding Stardust in Today’s Hollywood

Warner Bros. launched the TCM Classic Films Tour in April 2024, offering visitors a nostalgic journey through the studio’s historic movie legacy.

NBA Player Explains Why He Refused to Kneel

Orlando Magic’s Jonathan Isaac drew attention in 2020 for standing during the anthem and refusing the COVID-19 vaccine, citing his Christian faith.

Emergency Funds Can’t Be Used to Keep Food Stamps Flowing: USDA

Emergency funds held by the USDA cannot be used to keep the food stamp program going if members of Congress don’t reach a funding agreement.

Democratic Unity Frays as Shutdown Drags On

A handful of legislators have crossed the aisle on reopening and worker-pay bills, testing Democratic party unity in week four of the shutdown

Trump Rolls Back Emissions Rules on Copper Smelters

President Trump issued a proclamation aimed at reversing a Biden-era environmental rule that enforced stricter air emission standards on copper smelters.

Donor Gives $130 Million to Cover Shortfall in Troop Pay During Shutdown

Trump announced on Oct. 23 that an anonymous donor sent $130M to cover military pay during the ongoing government shutdown.

‘Frustration’ With Canada Led to Trump Scrapping Talks, Not Just Ontario’s Ad: US Official

President Trump cited Ontario’s TV ad as the reason for halting Canada trade talks, but officials say it stems from rising U.S. frustration with Ottawa.

Ontario to Pause Anti-Tariff Ad After Trump Terminates Trade Talks With Canada

Ontario pauses its TV ad campaign after Premier Doug Ford’s talk with PM Mark Carney, following backlash that halted U.S.-Canada trade talks.
spot_img

Related Articles

Popular Categories

MAGA Business Central