Biden Moves to Close Trade Loophole Benefiting Chinese E-Tailers

The administration aims to end duty-free imports under the de minimis exemption, citing unfair competition and safety concerns.

The de minimis exemption allows goods valued under $800 to enter the US duty-free, a provision exploited by Chinese e-commerce giants like Shein and Temu.
The number of shipments using the exemption has surged from 140 million to over one billion annually in the past decade.
The White House argues the loophole undermines US businesses, complicates trade law enforcement, and facilitates the entry of illicit goods.
Proposed rules would require detailed compliance paperwork and exclude certain goods, such as textiles, from the exemption.
Bipartisan congressional efforts are underway to legislate a comprehensive closure of the loophole, with potential new fees to fund increased customs inspections.