Black Flag Posted February 3, 2025 at 04:43 PM Share Posted February 3, 2025 at 04:43 PM https://www.nbcnews.com/news/world/trump-tariffs-take-aim-trade-loophole-used-chinese-online-retailers-te-rcna190386 Trump tariffs take aim at trade loophole used by Chinese online retailers like Temu and Shein Lawmakers have zeroed in on the “de minimis” provision in recent years, arguing it has helped Chinese e-commerce companies undercut competitors with lower prices. President Donald Trump’s tariffs against China, Canada and Mexico target a trade provision that helped fuel the explosive growth of budget online retailers, including Temu and Shein. Trump on Saturday signed executive orders imposing tariffs on the country’s top three trading partners. Goods imported from Canada and Mexico will be slapped with a 25% tariff, while goods from China will be charged a 10% tax. Energy resources from Canada will have a lower 10% tariff. The duties are expected to take effect on Tuesday. The orders against China, Canada and Mexico all halt a trade exemption, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty free. The de minimis provision has existed since the 1930s, but its use has come under increasing scrutiny in recent years. The Biden administration took steps last September to curb the “overuse and abuse” of de minimis, arguing it has helped Chinese e-commerce companies undercut competitors with lower prices. Officials have also argued that de minimis shipments are “subject to minimal documentation and inspection,” raising product safety concerns. The U.S. processed more than 1.3 billion de minimis shipments in 2024, according to data from the U.S. Customs and Border Protection agency. That’s up from 139 million a year in 2015, the CBP said. The loophole has enabled low-cost e-commerce companies like PDD Holdings-owned Temu, Shein and Alibaba’s AliExpress, which all have links to China, to offer a virtual smorgasbord of cheap apparel, household items and electronics, such as $15 smartwatches and $3 shoes. Link to comment Share on other sites More sharing options...
SiliconSorcerer Posted February 3, 2025 at 05:09 PM Share Posted February 3, 2025 at 05:09 PM Answer this: How can I order a SATA cable from China and have it delivered to my door for a total of 11 cents, I can' however mail this across the street for that. What deal Chinese get with shipping into the US is ... up. - FIX IT. Maybe the post office wouldn't lose billions a year, however I don't understand why they deliver the mail everyday. One route MWF, another TRS, and cut the postal workers in 1/2. Link to comment Share on other sites More sharing options...
bmyers Posted February 3, 2025 at 05:27 PM Share Posted February 3, 2025 at 05:27 PM On 2/3/2025 at 11:09 AM, SiliconSorcerer said: Answer this: How can I order a SATA cable from China and have it delivered to my door for a total of 11 cents, I can' however mail this across the street for that. What deal Chinese get with shipping into the US is ... up. - FIX IT. Maybe the post office wouldn't lose billions a year, however I don't understand why they deliver the mail everyday. One route MWF, another TRS, and cut the postal workers in 1/2. It is the law. Postal Service Reform Act of 2022 which mandates that the United States Postal Service (USPS) deliver mail six days a week. Postal Service can't change it on their own, it has be changed by the Board of Governors and Congress. They have looked at changing it before, but can never get it past the powers to be. In addition, most other countries, the postal service is ran as a business and not a government service. They have some that are actually large banks as part of the service they offer. Again, by law, the Postal Service is limited to what it can and can't do. Link to comment Share on other sites More sharing options...
SiliconSorcerer Posted February 3, 2025 at 05:45 PM Share Posted February 3, 2025 at 05:45 PM On 2/3/2025 at 11:27 AM, bmyers said: It is the law. Postal Service Reform Act of 2022 which mandates that the United States Postal Service (USPS) deliver mail six days a week. Postal Service can't change it on their own, it has be changed by the Board of Governors and Congress. They have looked at changing it before, but can never get it past the powers to be. In addition, most other countries, the postal service is ran as a business and not a government service. They have some that are actually large banks as part of the service they offer. Again, by law, the Postal Service is limited to what it can and can't do. Trump should privatize it - problem solved. Link to comment Share on other sites More sharing options...
mikew Posted February 3, 2025 at 05:52 PM Share Posted February 3, 2025 at 05:52 PM On 2/3/2025 at 11:45 AM, SiliconSorcerer said: Trump should privatize it - problem solved. That's why we have UPS and FedEx. Link to comment Share on other sites More sharing options...
Flynn Posted February 5, 2025 at 08:01 AM Share Posted February 5, 2025 at 08:01 AM On 2/3/2025 at 11:09 AM, SiliconSorcerer said: What deal Chinese get with shipping into the US is ... up. - FIX IT. Maybe the post office wouldn't lose billions a year, however I don't understand why they deliver the mail everyday. One route MWF, another TRS, and cut the postal workers in 1/2. These deals are mostly global among state-run postal systems through the Universal Postal Union (a UN branch) it's a broken system where industrialized nations subsidize others... Link to comment Share on other sites More sharing options...
Odinson Posted February 5, 2025 at 01:41 PM Share Posted February 5, 2025 at 01:41 PM Half baked reply: there is a weight limit under which goods from China are shipped for free or around $1, not sure what the weight limit is. Shipping subsidized by the PRC, partly to flood markets with cheap goods and put our manufacturers out of business. Important to remember that China plays the loooong game, they are content to wait generations for their efforts to pay off - we tend to look at things in 4 year cycles. Link to comment Share on other sites More sharing options...
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