0:00
A cheap loophole used by many Chinese retailers to ship low-cost items into the U.S. is now being
0:06
plugged with new tariffs, but at higher rates than originally expected. Xi'an and Timu are among the companies benefiting from the de minimis exemption
0:16
which applies to packages worth less than $800, allowing them to keep prices low for customers
0:23
Customs and Border Protection reports more than 1 billion packages used this exemption in 2024
0:28
double the number reported in 2022. Originally, President Trump imposed a 30 percent tariff
0:35
but after China introduced their own tariffs on U.S. goods, the White House announced Tuesday that the rate will now increase to 90 percent, tripling the levy
0:43
Just last week, an executive order signed by Trump targeted deceptive shipping practices used by China
0:50
to bring synthetic opioids into the U.S. It states while the U.S. previously offered a generous de minimis exemption
0:57
China enforces strict import restrictions and tightly limits de minimis exemptions, showing no similar leniency toward U.S. shipments
1:06
Starting May 2nd, Chinese businesses will face duties on shipments under $800
1:12
Packages from China will be subject to a 90 percent tax, which translates to $75 per postal item
1:19
with expectations that this will increase to $150 in June. When Trump first announced plans to close the de minimis loophole in February
1:29
the Cato Institute warned the change could have far-reaching negative impacts for Americans
1:34
especially low-income customers. The public policy research organization said the move could require supply chains to be restructured, reduce competition, and limit consumer choices
1:45
For Straight Air News, I'm Kaylee Carey. Find more fact-based, unbiased news right now on the Straight Air News mobile app
