Biden Administration Moves to Close $800 Trade Loophole Exploited by Chinese E-Commerce Giants

Sep 13, 2024, 11:00 AM

A significant number of U.S. House Democrats have urged President Joe Biden to close a trade loophole that allows low-value packages from China to enter the U.S. without being taxed or inspected. This loophole, known as the 'de minimis' exemption, has been exploited by Chinese e-commerce giants such as Shein and Temu. The lawmakers argue that this provision undermines American manufacturers, workers, and retailers, and facilitates the entry of illegal drugs into the country. In response, the Biden administration has announced new actions to address the abuse of the de minimis exemption, aiming to tighten rules on low-value package shipments from Chinese firms. The administration's move is part of a broader effort to curb the influx of cheap goods and ensure fair trade practices. The de minimis threshold is set at $800.