The Peter Zeihan Podcast Series The Fire Hose of Chaos: Bye-Bye De Minimis
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Apr 26, 2025 A significant change is on the horizon as the U.S. plans to overhaul the de minimis trade rule, eliminating the $800 tax-free threshold for imported goods. This means small packages will now face a staggering 90% tariff and a $75 fee. The discussion highlights how this could affect not just everyday commerce but also illegal activities like fentanyl trafficking. The implications of these changes could reshape shipping practices and trade dynamics substantially.
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De Minimis Loophole Ends
- The de minimis rule allowed imports under $800 to bypass tariffs and customs checks in the US.
- Ending this on May 2 will impose tariffs and fees on small packages, closing a major loophole.
De Minimis Fuels Fentanyl Trade
- Fentanyl precursor chemicals have been imported via the de minimis system through U.S. post.
- Ending de minimis shipping will curb this major drug supply route and impact the fentanyl trade.
Tariff Impact on Fentanyl Supply
- De minimis tariff changes won't eliminate fentanyl but will increase its cost and supply friction.
- It will push fentanyl labs to adapt or rely more on local precursor synthesis increasing complexity.