Trump's New Tariffs and Loophole Closure Shake US-China Trade

The elimination of a long-standing duty-free exemption and a new 10% tariff on Chinese imports disrupt e-commerce and raise costs for American consumers.

• The US has imposed a universal 10% tariff on all Chinese imports and ended the de minimis exemption, which previously allowed duty-free imports under $800.
• Chinese e-commerce giants Shein and Temu, which relied heavily on the de minimis loophole, face increased costs and operational challenges under the new rules.
• American consumers, especially those in lower-income households, are experiencing higher prices and unexpected fees on imported goods, leading to widespread frustration.
• US Customs and Border Protection and shipping companies are struggling to manage the surge in package inspections and compliance with the new trade rules.
• The changes are expected to impact Chinese export revenues and may benefit competitors like Amazon, which has already adapted to the new trade landscape.

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