America’s threat to drop trade rule may hurt China, Temu and itself
Feb 15, 2024
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Post reporter Siqi Ji discusses the controversy surrounding the de minimis rule and its impact on Chinese e-commerce platforms like Temu. The chapter also explores the uncertainty around proposed bills, the US presidential race's impact on trade with China, and future stories on trade and Taylor Swift's marketing skills.
The De Minimis Rule in the US allows packages valued at less than $800 to enter the country without import fees or screening, which Chinese e-commerce platforms like Tamoo have been accused of exploiting.
The actual passage of bills to reform or eliminate the De Minimis Rule remains uncertain due to the busy Congress agenda and differing opinions on how to reform the rule.
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The De Minimis Rule and Its Impact on Tamoo
The De Minimis Rule in the US allows packages valued at less than $800 to enter the country without import fees or screening. Chinese e-commerce platforms like Tamoo have been accused of exploiting this loophole to import inexpensive products. US lawmakers are concerned that this practice puts American retailers at a disadvantage. Two bipartisan bills have been introduced to reform or eliminate the De Minimis Rule.
Uncertainty Surrounding the De Minimis Rule Changes
While there is bipartisan support for revising the De Minimis Rule, the actual passage of the bills remains uncertain due to the busy Congress agenda and differing opinions on how to reform the rule. Stricter scrutiny of smaller packages has already been implemented since January. If the De Minimis provision for Chinese exports is changed, it could lead to higher costs for US consumers and negatively impact China's export-based economy.
A century-old American trade provision known as the “de minimis” rule has drawn the attention of some US lawmakers. They argue that the rule gives Chinese e-commerce platforms, such as Temu, an unfair advantage over American retailers. Post reporter Siqi Ji explores the arguments for scrapping the rule and explains why changing it will be hard despite bipartisan support.
Read Siqi’s story: https://sc.mp/5c57e8
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