On January 23, Reuters reported that President Donald Trump, amidst accusing China of unfair trade practices, played a significant role in the U.S. trade benefit known as the "de minimis" exemption on import tariffs.
In a recent move before leaving office, his predecessor Joe Biden made a proposal that countered Trump's stance on the de minimis policy.
The de minimis policy in the U.S., which allows waived customs procedures and tariffs on imports valued under $800 for individual shipments, is considered one of the most lenient globally; for comparison, the EU's threshold stands at 150 euros ($156).
Since its implementation in 1938, the use of de minimis has grown substantially. Under Barack Obama, the waiver limit was raised from $200 to $800, leading to a 600% increase in packages utilizing the exemption by fiscal year 2023.
Contentious issues related to de minimis involve concerns over trade imbalances and the influx of synthetic opioids like fentanyl, contributing to a national crisis with a high death toll.
Critics argue that de minimis enables companies to avoid tariffs on Chinese products and bypass customs scrutiny, raising issues of forced labor regulations.
President Trump's administration has taken steps towards reviewing the de minimis policy to safeguard U.S. revenue and public health, particularly concerning counterfeit goods and illegal drugs.
China has expressed willingness to engage in dialogue with the U.S. to manage disagreements and enhance cooperation.
Globally, the EU adheres to its de minimis regulations, while Mexico has recently revised its threshold for incoming packages from countries beyond Canada and the U.S.
China's direct-to-consumer goods de minimis export value reached $240 billion last year, representing a substantial portion of its overseas sales and contributing to its GDP.
Analysts foresee potential impacts on Chinese export and GDP growth if the U.S., Europe, and Southeast Asia adjust their customs duty requirements, affecting sectors such as apparel, consumer electronics, home decor, and beauty products.