financetom
Business
financetom
/
Business
/
US lawmakers urge Biden to close tariff 'loophole' for Chinese small package imports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US lawmakers urge Biden to close tariff 'loophole' for Chinese small package imports
Sep 11, 2024 10:39 PM

WASHINGTON (Reuters) - A majority of Democratic U.S. House of Representatives members on Wednesday urged President Joe Biden to use his executive powers to end a tariff "loophole" for low-value packages that they say are being exploited by Chinese e-commerce firms and fentanyl traffickers.

The lawmakers in a letter asked Biden to end the "de minimis" trade provision that allows shipments valued under $800 to enter the U.S. duty free and without customs inspections as long as they are addressed to individuals.

The substantial limit has fueled the growth of Chinese e-commerce firms Shein and PDD Holdings' Temu, which ship to U.S. consumers directly from China, but other retailers, including Amazon ( AMZN ) and Walmart ( WMT ), are also utilizing it. The small-package exemption has been part of U.S. trade law since 1930, but the threshold was increased to $800 from $200 in 2015.

The lawmakers, led by Earl Blumenauer, Rosa DeLauro and Tom Suozzi, argued that the de minimis provision was being exploited by traffickers of the deadly opioid fentanyl and its precursor chemicals.

"The urgency of closing the de minimis loophole cannot be overstated. Americans continue to die from mislabeled fentanyl-laced pills that are ordered online, skirt inspection thanks to de minimis and are delivered to Americans' doorsteps," they wrote. "De minimis imports, particularly from China, also evade most existing trade enforcement mechanisms, including the Uyghur Forced Labor Prevention Act and Section 301 tariffs used to hold trade cheats accountable."

The National Council of Textile Organizations, representing domestic manufacturers, argues that de minimis shipments from fast-fashion e-commerce firms including Shein are dodging the punitive "Section 301" tariffs on many Chinese textile imports and have led some 18 U.S. plants to close in the last year alone.

The group said shipments keep growing, with over 4 million individual packages arriving under the threshold daily, topping 1 billion last year.

The total value of estimated imports of low-value shipments under the de minimis threshold has more than doubled since 2014 to $23.4 billion last year, making it the 12th largest U.S. import category globally, according to U.S. Census Bureau data retrieved through the International Trade Centre's Trademap tool. That is just ahead of medium-duty pickup trucks, largely from Mexico.

Such shipments from China also more than doubled to $4.6 billion over the same period, making it the eighth largest category after computer monitors.

A White House spokesperson could not immediately be reached for comment on the request by the lawmakers, who also have been working on legislation to close the de minimis provision.

The National Foreign Trade Council, a trade group representing interests of a wide range of U.S. companies, cautioned the move would raise costs for consumers at time when inflation is a hot issue in the November presidential election campaign.

"Weakening de minimis would cost consumers billions, require new appropriations for Customs and Border Protection, and do nothing to enhance enforcement or improve security at our ports," NFTC supply chain senior director John Pickel said in a statement.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Half of Business Owners in Canada Have Experienced Fraud in The Past Year, Says CFIB
Half of Business Owners in Canada Have Experienced Fraud in The Past Year, Says CFIB
Oct 3, 2024
09:10 AM EDT, 09/24/2024 (MT Newswires) -- More and more Canadian small businesses are being hit by fraud, with half of them experiencing either attempted or successful fraud in the past 12 months, and 36% of those who fell victim to fraud suffering financial losses, according to new data by the Canadian Federation of Independent Business (CFIB) released Tuesday in...
Factbox-Hurricane threat prompts U.S. gulf coast energy facilities to scale back operations
Factbox-Hurricane threat prompts U.S. gulf coast energy facilities to scale back operations
Oct 3, 2024
(Reuters) - Energy companies operating in the U.S. Gulf Coast have started to scale back operations and evacuate production locations in anticipation of the major hurricane this week, which is forecasted to sweep through offshore oil-producing areas. The U.S. National Hurricane Center said a Potential Tropical Cyclone Nine was expected to rapidly intensify over the Gulf of Mexico and could...
Analysis-Biden's car-tech ban is a powerful new weapon against Chinese EVs
Analysis-Biden's car-tech ban is a powerful new weapon against Chinese EVs
Oct 3, 2024
WASHINGTON/DETROIT (Reuters) - The Biden administration's proposed ban on Chinese connected-car technology could prove its strongest weapon yet to fend off an onslaught of cheap Chinese electric vehicles that has upended the global auto industry. The ban on hardware and software, announced Monday by the U.S. Commerce Department, is the administration's latest salvo after imposing 100% tariffs on Chinese EVs...
Oil Rises as China Takes Steps to Boost Economy and New Storm Forms in Gulf of Mexico
Oil Rises as China Takes Steps to Boost Economy and New Storm Forms in Gulf of Mexico
Oct 3, 2024
09:09 AM EDT, 09/24/2024 (MT Newswires) -- Oil prices rose early on Tuesday as China announced a package of stimulus measures to support a flagging economy, while supply tightened as Gulf of Mexico producers began evacuating platforms ahead of a storm forming in the region. West Texas Intermediate crude for November delivery was last seen up US$1.6o to US$71.97 per...
Copyright 2023-2025 - www.financetom.com All Rights Reserved