Trump Proposes Tariffs on Temu and Shein Shipments from China
Former President Donald Trump has proposed imposing tariffs on shipments from Chinese e-commerce giants Temu and Shein, targeting the 'de minimis' loophole that allows these companies to ship goods to the U.S. without paying duties. This move comes as part of Trump's broader strategy to address trade imbalances with China, which he claims are detrimental to American businesses and workers.
The 'de minimis' rule, which exempts shipments valued under $800 from tariffs, has been a significant advantage for Temu and Shein, enabling them to offer low prices and rapid delivery to American consumers. Critics argue that this loophole undermines domestic manufacturers and contributes to job losses in the U.S.
Trump's proposal has sparked a debate on the effectiveness of tariffs as a tool for economic policy. Supporters believe it could level the playing field for American companies, while opponents worry about potential increases in consumer prices and retaliatory measures from China. The discussion around these tariffs highlights ongoing tensions in U.S.-China trade relations and the complexities of global e-commerce.
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What is de minimis?
In Latin, “de minimis” means something that is too small or insignificant to be considered. The rule, passed by Congress in the 1930s and amended over the years, allows items being shipped or brought into the United States that are worth less than $800 to circumvent import taxes.
How is Temu affected by tariffs?
The impact will likely be significant for Temu, known for its bargain prices. The extra tariffs may either reduce profit margins or lead to higher prices for consumers, potentially altering the value proposition that attracted shoppers in the first place.
What is duty free de minimis?
De Minimis Value as the threshold is known, varies from country to country. Items imported into the United States are subject to duty when the value is over USD 800. In Australia, duty and taxes kick in after the first USD 1,000. In Canada, it's USD 20; in some other countries, it's USD 5.
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