Resources about Tariffs and Trade Policies

This Executive Order aims to prevent the cumulative effect of multiple tariffs on imported articles. It clarifies that tariffs imposed under certain executive orders will not be cumulative with other tariffs imposed under other executive orders. It also clarifies that the order does not affect the authority of executive departments and agencies to impose duties or other trade measures.

The President issued an executive order modifying reciprocal tariff rates in response to trading partner retaliation and alignment. The order suspends country-specific ad valorem rates of duty for most trading partners, imposing a 10% duty instead. It also increases tariffs on China to 125% and implements de minimis tariff increases to prevent circumvention.

The US has ended its de minimis provision for low-value imports from China and Hong Kong, effective May 2, 2025. This means that goods valued at or under $800, previously eligible for duty-free entry, are now subject to tariffs.This change affects many e-commerce companies like Shein and Temu, impacting the cost of goods for American consumers. 

What is de minimis?
De minimis refers to a trade policy that allows low-value goods to enter a country duty-free. It was originally intended to simplify customs procedures for small shipments. 

Why is it being ended for China?
The US government is ending the de minimis provision for China and Hong Kong as part of measures to address the synthetic opioid crisis and to ensure fair trade practices. The US government argues that the provision was being abused by Chinese e-commerce companies to avoid paying tariffs. 

What are the consequences?
The elimination of de minimis means that low-value goods from China will now be subject to tariffs, potentially increasing their price for consumers. This could impact e-commerce companies like Shein and Temu, as well as other businesses that rely on this provision. 

How does this affect consumers?
Lower-income households are expected to be particularly affected, as many of these packages are shipped to areas with lower incomes.