Author: Ana Swanson, Keith Bradsher and Jordyn Holman
Published on: 03/02/2025 | 00:00:00
AI Summary:
President Trump's trade move could increase costs for many online goods. One provision of Mr. Trump’s executive order will increase costs. The decision could shift the landscape for online sales from Chinese vendors. Chinese exports of low-value packages soared to $66 billion in 2023 from $5.3 billion in 2018. China is responsible for about two-thirds of them, sending more than all other countries combined. The carve out has given an advantage to Chinese companies like Shein and Temu. Law enforcement, trade and drug prevention groups sent a letter to Mr. Trump last month asking him to end the trade exception. The issue has percolated for years, but efforts to limit or end the provision have recently gained momentum. Lawmakers have been considering legislation to the de minimis rule. Congress raised the de minimis exemption in 2016 to $800 from $200. The number of low-value packages sent to the United States each year has soared. Research has found that eliminating the exemption entirely would result in costs of $11 billion to $13 billion for American consumers. The official figures for U.S. Trade with China will immediately rise. The change will mean that perhaps as much as $100 billion of trade will no longer be missing from official statistics. A growing number of countries are forging their own economic partnerships without the United States. China's Difficult Spot: Is it better to ignore them or retaliate? Doing little runs the risk of looking weak in the eyes of the Chinese people.
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