The Biden administration has announced a crackdown on low-cost imports from China, particularly targeting e-commerce giants like Shein and TemuThe proposed law aims to close a loophole that has allowed these platforms to import certain goods duty-free.
At the centre of attention is the “de minimis” exemption, which currently exempts shipments under $800 from tariffs and duties. This exemption, designed to facilitate low-value international trade, has allowed Chinese retailers to flood the U.S. market with more than a billion shipments of discounted clothing, textiles, and other merchandise annually.
The influx of cheap imports has created an uneven playing field nationwide.
President Biden has accused these Chinese trade giants of misusing this policy, calling them “unsafe and unfairly traded” products.
He said: “Over the last ten years, the number of shipments entering the United States claiming the de minimis exemption has increased significantly, from about 140 million per year to over a billion per year.”
According to Biden, This situation has put US retailers such as H&M and Zara in difficultywhich struggle to compete. In addition to harming American businesses, abuse of the tariff exemption would complicate the enforcement of U.S. trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.
Among the proposed solutions there is that of make imports already covered by U.S. trade tariffs not eligible for the de minimis exemption. Currently, this covers about 40% of total imports, including 70% of Chinese textiles and apparel.
The Import Security and Fairness Act, currently before the House, would automatically eliminate duty exemptions for imports from any country on the Priority Watch List of the United States Trade Representative. This list includes not only China, but also Argentina, Chile, India, Indonesia, Russia, and Venezuela.
Se a total elimination was not possibleat a minimum, excluding textiles and apparel from the exemption is being considered. Additionally, the administration recommends requiring more detailed data disclosures, such as 10-digit tariff classification numbers and additional information about individuals using the exemption.
This tightness aligns with broader White House efforts to counter China’s economic influence and protect domestic industries, including restrictions on electronics imports and incentives for electric vehicle production in the United States.
Source: www.tomshw.it
