White House Takes Action on Trade Loophole Exploited by Chinese E-Commerce

Source: The American Prospect
by David Dayen

“Numerous bills challenging China passed the House of Representatives last week, in a blitz orchestrated by the Republican leadership. But they left on the table a high-impact, bipartisan measure dealing with a clear danger from Chinese mercantilism: a bill to close the ‘de minimis’ loophole that has allowed billions of packages into the country from China, avoiding tariffs or inspections. The loophole, whereby packages valued at under $800 can bypass customs duty-free, was initially intended to save tourists from paperwork hassles when bringing home souvenirs. But it has now been blamed for facilitating the illegal drug trade and devastating the domestic textile industry. It makes consumer product safety compliance, trade enforcement of any kind, and even accurate estimation of the trade deficit impossible.” [editor’s note: So what’s the down side? – TLK] (09/16/24)

https://prospect.org/economy/2024-09-16-white-house-action-trade-loophole-chinese-ecommerce/