While the 10 percent tariff has attracted tremendous attention, the actual change in President Donald Trump’s executive order is the suspension of the De Minimis loophole. This loophole has enabled e-commerce behavior to evade US import tax and consumer safety standards, giving them an unfair playing field against US businesses.
The De Minimis recall would not have just added a predictable cost, as the tariff does; It would have forced these companies to comply with the same rules and regulations that US businesses are subject to.
The De Minimis exemption that can enter goods that are valued under US $ 800 can accelerate the US without duties, has accelerated billions of dollars in unregulated imports that have damaged US retailers and manufacturers. In 2023 alone, more than one billion consignments – with a value of about US $ 54.5 billion – were processed via de minimis (US Customs and Border Protection).
The greater competitive threat to US businesses is not a tariff; It is uncontrolled competition from companies that benefit from the regulatory gaps. As platforms such as Shein and Temu bypassing rates and compliance obligations bypass, they undermine US businesses and redirect the revenue away from US retailers, manufacturers and logistics suppliers.
The reinstatement of De Minimis – so these platforms can still evade US consumer safety regulations – is a much bigger problem than a 10 percent rate on Chinese goods. We realize that it puts a logistical burden on our customs, and hopes that it is just a temporary rollback, such as ethical businesses that support fair competition and consumer safety. If it is serious about protecting US businesses and consumers, the De Minimis recall must be restored. “
The closure of this loophole would create a level playing field, compelling these foreign platforms to play according to the same rules as American businesses followed, leading to fairer competition and increased consumer protection.
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