In the aftermath of the tariffs placed on goods imported from China, the United States Postal Service has suspended the delivery of packages from the communist country. While an official reason has not been given, it is likely to ensure the new tax is levied on those packages.
The United States is well known for closing tax loopholes to ensure that theft proceeds smoothly. Trump’s decision to revoke a “de minimis” rule for China, which previously allowed small packages under $800 to enter the U.S. duty-free, is one example of this “loophole” the ruling class wants to close. China and consumers could pass this by exporting multiple packages of smaller value items rather than one large package.
This exemption, often used by Chinese-linked e-commerce companies, was removed as part of a new 10% tariff on goods from China and Hong Kong, which took effect just after midnight Tuesday Washington time.
Tariffs Will Not Make America Great Again
Consumers are going to bear the brunt of these taxes, as businesses and China will jack up their prices to cover the costs.
According to U.S. Customs and Border Protection data quoted by Bloomberg, the total volume of de minimis shipments into the U.S. hit 1.4 billion packages in fiscal year 2024, about double the number in 2022. Predictably, discount online retailers, as well as Amazon competitors like Temu and Shein, contributed significantly to the spike in volume.
U.S. officials have alleged that parcel mail, direct from China and via third-party countries, is a gateway for illicit drugs, including deadly fentanyl. “What the cartels in China have done is exploit that loophole to smuggle in not just fentanyl but all sorts of drugs,” White House trade adviser Peter Navarro told Politico in an event in Washington Tuesday.
Politico reported that the Trump Administration is serious about using duties as a way to raise revenue. Republicans are looking to extend and expand tax cuts while the administration raises taxes on the end consumer. Trump allies told Politico that they are working to develop a framework for achieving more revenues; one that goes well beyond one-off threats.
Retailers Warn Of Price Hikes Before Christmas As More Tariffs Go Into Effect
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