{"id":16095,"date":"2025-04-03T12:10:45","date_gmt":"2025-04-03T12:10:45","guid":{"rendered":"https:\/\/wifamily.news\/?p=16095"},"modified":"2025-04-06T16:03:40","modified_gmt":"2025-04-06T16:03:40","slug":"small-packages-shipped-from-china-face-new-taxes-under-trump-tariff-plan","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=16095","title":{"rendered":"Small Packages Shipped from China Face New Taxes Under Trump Tariff Plan"},"content":{"rendered":"

This post originally appeared at https:\/\/thestarnewsnetwork.com\/2025\/04\/03\/small-packages-shipped-from-china-face-new-taxes-under-trump-tariff-plan\/<\/a><\/p>\n

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by Casey Harper<\/h5>\n

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President Donald Trump rolled out his controversial array of\u00a0reciprocal tariffs<\/a>\u00a0on nations around the world, but a lesser reported element of his new trade policy is the removal of a tax exemption for Chinese packages sent from companies like Shein and Temu into the U.S.<\/p>\n

The White House announced that effective May 2 of this year, the de minimis exemption will end.<\/p>\n

\u201cThe de minimis loophole has allowed Chinese companies like Shein and Temu to flood our market with junk, opioids, and other illegal products, often created from stolen American intellectual property,\u201d U.S. Sen. Tom Cotton, R-Ark., wrote on X Thursday.<\/p>\n

U.S. Sen. Bill Cassidy, R-La., echoed that sentiment, saying American companies cannot compete with Chinese companies that face allegations of using slave labor to make cheaper products.<\/p>\n

\u201cCurrently, \u2018de minimis\u2019 shipments account for 92% of all cargo entering the U.S. China takes advantage of de minimis to dump billions of cheap goods into our economy that are subsidized through China\u2019s lack of labor and pollution standards,\u201d Cassidy said.<\/p>\n

\u201cWhat\u2019s worse is bad actors in China are also exploiting de minimis to smuggle deadly narcotics into our country,\u201d he added.<\/p>\n

The White House says the U.S. processes 4 million de minimis shipments every day and that they will now \u201cbe subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures.\u201d<\/p>\n

Those previously untaxed packages are now \u201csubject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025).<\/p>\n

\u201cThis is in lieu of any other duties, including those imposed by prior Orders,\u201d the White House added.<\/p>\n

The allegations of slave labor use are not without evidence. As The Center Square previously\u00a0reported<\/a>, the U.S. Select Committee on the Chinese Communist Party published bipartisan research in June 2023 reporting that Chinese companies are taking advantage of the American tax system.<\/p>\n

\u201cThese results are shocking: Temu is doing next to nothing to keep its supply chains free from slave labor,\u201d Mike Gallagher, a former Wisconsin lawmaker who previously served as chair for the committee, said in the announcement of the report\u2019s release. \u201cAt the same time, Temu and Shein are building empires around the de minimis loophole in our import rules \u2013 dodging import taxes and evading scrutiny on the millions of goods they sell to Americans.\u201d<\/p>\n

Stocks\u00a0took an expected tumble<\/a>\u00a0Thursday morning after rising the day before. Economists disagree about the impact of the tariffs, both on how much they will increase costs on consumers and to what degree they will boost domestic production.<\/p>\n

Trump and backers of the tariffs have said the tariffs are meant to level the playing field since the tariffs generally only apply to countries that already have similar tariffs on U.S. goods. Theoretically, some argue, the reciprocal tariffs could lead to fewer tariffs overall as both sides are incentivized to lower the tariff burdens on one another.<\/p>\n

Critics have emphasized that Americans will pay higher prices as the tariff taxes are passed on to consumers.<\/p>\n

\u201cSo-called Liberation Day will amount to financial suffocation of American families,\u201d Joel Griffith, senior fellow at Advancing American Freedom, told The Center Square. \u201cThe annual impact of these tariffs will exceed $3,500 per year for families \u2013 easily erasing several years\u2019 worth of income gains for millions of workers. Over the course of 30 years of free trade with Canada and Mexico \u2013 in particular \u2013 real annual family income rose more than $25,000. Our manufacturing output jumped more than 50% even as our economy further diversified, providing a record number of high paying jobs along with more affordable goods for families of all income levels.\u201d<\/p>\n

However, closing what some call the \u201cde minimis loophole\u201d was more well received than some of the tariff policies, but it is not without its critics.<\/p>\n

\u201cJust want to emphasize that de minimis is not a loophole and was legislated by Congress because collecting tariffs on low-value shipments creates an unnecessary administrative burden on CBP and raises costs on U.S. businesses and consumers,\u201d Inu Manak, a trade policy fellow at the Council on Foreign Relations, wrote online.<\/p>\n

\u2013 \u2013 \u2013<\/p>\n

Casey Harper is the D.C. Bureau Reporter at The Center Square<\/a>.<\/em><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

The post Small Packages Shipped from China Face New Taxes Under Trump Tariff Plan<\/a> first appeared on The Star News Network<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This post originally appeared at https:\/\/thestarnewsnetwork.com\/2025\/04\/03\/small-packages-shipped-from-china-face-new-taxes-under-trump-tariff-plan\/ by Casey Harper \u00a0 President Donald Trump rolled out…<\/p>\n","protected":false},"author":15,"featured_media":16046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":["post-16095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wi-daily-star"],"_links":{"self":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/16095","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16095"}],"version-history":[{"count":1,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/16095\/revisions"}],"predecessor-version":[{"id":16096,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/posts\/16095\/revisions\/16096"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=\/wp\/v2\/media\/16046"}],"wp:attachment":[{"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wifamily.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}