An executive order signed by President Trump ends the 'de minimis' exemption for low-value Chinese imports, impacting retailers like Temu and Shein. Previously, goods under $800 avoided tariffs, but the loophole's closure aims to curb deceptive shipping practices, especially concerning illicit drugs hidden in low-value packages. The number of such imports had doubled since 2018, prompting regulatory action. Consumers can expect price hikes as the cost burden of tariffs shifts from importers to consumers due to the increased regulatory environment surrounding small shipments.
The closure of the de minimis loophole means that small-value Chinese imports will no longer evade tariffs, potentially leading to increased prices for American consumers.
President Trump is targeting deceptive shipping practices by Chinese-based shippers, many of whom hide illicit substances in low-value packages to exploit the de minimis exemption.
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