How sales costs online after Trump’s commercial move

President Trump’s decision to impose a huge tariff on Canada, Mexico and China included a small but large change in how to impose taxes on online purchases when they enter the United States.

One of the provisions of Mr. Trump’s executive order will increase the costs of more than 80 percent of US e -commerce imports. The resolution may turn the scene of online sales from Chinese sellers such as Shein and TEMU who quickly sought their share in the market by sending cheap goods to the United States.

It erases the president’s order about the alternative solution that many companies have benefited from in recent years, especially since Mr. Trump imposed a tariff on Chinese products during his first term. This ruling, known as the minimum exception, allowed some products that were sent directly to consumers from online platforms to enter the United States without facing the definitions, a huge tax advantage.

This mysterious judgment of the Trade Law supports major business models. Shein and TEMU and many of the Amazon sellers are used to exempt Mineris to overcome definitions. The exemption allows the shipment of packages from other countries without paying a tariff, as long as the shipments do not exceed $ 800 for each recipient per day.

But critics say that the minimum management also helped fuel the American drug crisis. Importers who use Minimis do not have to provide the most information to customs and American border protection as they do with other packages, for easy processing. This means that the drugs and sects used to make them ship more easily to the United States without the government captured.

The minimum of a century -old commercial law stems from time that was originally intended for shipments that will be very trivial so that they do not deserve customs interest. But the use of this ruling has exploded in popularity.

A report issued by the Congress Research Service last week found that Chinese exports of low -value packages increased to $ 66 billion in 2023 from 5.3 billion dollars in 2018. While Mr. Trump’s executive applies to China, Canada and Mexico, China is largely It is the largest source of these packages. The country is responsible for about two -thirds, and it sends more than all other countries combined, according to federal statistics.

The bus has given an advantage to Chinese companies such as Shein and TEMU, which charges millions of lower value beams directly to consumer threshold every year. This ability to overcome the shein and TEMU tariffs to provide cheap prices, which enhances its popularity. According to Congress Research Service, the two companies together possess about 17 percent of the discount e -commerce market in the United States for fast fashion, games and other consumer goods.

This angered traditional retailers, who usually bring great large shipments to their warehouses that must pay a tariff. Retail traders like Walmart and Amazon He was facing pressure To transform more towards the TEMU and Shein charging model directly to consumers from China, which means that they were creating less jobs in American distribution centers.

Fedex and UPS, which fly many beams throughout the Pacific Ocean of China, have spoken in favor of maintaining a minimal extent.

But the Trump administration focuses on targeting the minimum for another reason: its relations with the trade of fentanel. A White House official said in a call with a correspondent on Saturday that the ruling causes the United States to lose a huge amount of customs tariff revenues, as well as obstructing the efforts of customs officials to capture the fentanel shipments that reach packages.

A group of law enforcement groups, trade and drug prevention has been sent a A message to Mr. Trump Last month, he was asked to end the commercial exception, saying that “the United States is overwhelmed with fentanel, ventanil, and birth control pills and other illegal goods from China and other countries.”

The case has erupted for years, but the efforts made to reduce or end the ruling have recently gained momentum. Legislators are studying legislation for the minimum base and Biden administration Suggested changes Last year, it would narrow the exception when it comes to China, but they have not yet left.

Congress proposals to change De Minimis have maintained an exemption for international travelers who obtain up to $ 800 of external purchases to the United States in their luggage, allowing them to avoid customs advertisements and pay duties at American airports and other entry points to the United States.

In contrast, Mr. Trump’s executive orders were not mentioned to keep the minimum exemption for people entering the United States. Depending on how to deal with customs officials, this may complicate the entry of the United States starting from Tuesday to people traveling from Canada, Mexico or China.

Timothy C said. Braretbell, a lawyer at Wayli Ryan, The change made by the Trump administration “will have extensive implications for many companies and industries.” He said that a variety of imported industries had been “exposed” to minimal provisions, and the elimination of the gap will be consistent with the goal of the president of addressing the shipping shipments.

The Chinese Ministry of Trade had no response on Monday to questions about Mr. Trump’s decision. Shin and Timo, also did not respond to a request for comment. A spokesman for the Chinese embassy said China is strongly opposed to the imposition of definitions, and that there is no winner in a commercial war.

The Congress raised the minimum exemption in 2016 to $ 800 from $ 200 in response to complaints from American customs officials that they were already struggling and then to examine all next packages. With the exemption increased, the number of low beams sent to the United States every year has risen.

Since many Americans buy such packages, the change will also come at an economic cost. I found research Eliminating the exact exclusion of the minimum will lead to costs ranging from $ 11 billion to $ 13 billion for American consumers and hurting poor families and minorities inappropriately.

Amit Khandlo, an economist at Yale University, who is author of a study on commercial governance, said, his research found that low -income Americans spent an inconsistent amount on minimal shipments and imports from China compared to the richest consumers.

“Individuals with low incomes will be hurt more,” he said. “It is clear that they will benefit from local retailers and local producers from imposing taxes on these imports, but there is a cost.”

Ending the minimum exception will lead to another interesting change: the official numbers of American trade with China and the American trade deficit will increase immediately. Minimum shipments in the model trade data issued by the census do not appear.

Brad W. Sider, an economist in the Council of Foreign Relations, said that the change will mean that it may not be up to $ 100 billion of trade missing from official statistics. “It restores the shadow trade again from the shade.”