Trump's Executive Order on De Minimis Trade Loophole

SOURCE www.nbcnews.com
President Trump signed an executive order shutting the de minimis trade loophole, causing disruptions in trade with China and Hong Kong. The new order imposes duties on shipments worth less than $800, aiming to address concerns about counterfeit and unsafe goods entering the U.S.

Key Points

  • President Trump signed an executive order shutting the de minimis trade loophole
  • The order imposes duties on shipments worth less than $800
  • Critics raise concerns about unfair advantage to Chinese e-commerce companies and influx of packages with minimal documentation and inspection
  • The Trump administration seeks to close the loophole over concerns about illicit substances like fentanyl entering the U.S.

Pros

  • Addresses concerns about counterfeit and unsafe goods entering the U.S.
  • Gives customs officials, retailers, and logistics companies more time to prepare for the changes

Cons

  • Disrupted trade with China and Hong Kong
  • Raised concerns about unfair advantage to Chinese e-commerce companies