Trump’s De Minimis Order Could Raise Costs on Clothes and Goods From China - The New York Times

Key Points

President Trump's order eliminates the de minimis exemption for goods from China and Hong Kong, ending tariff-free entry for goods under $800.

This action is intended to prevent drug smuggling and increase tariff revenue.

Experts anticipate increased prices for consumers and shipping delays due to the increased verification of packages.

Arguments and Details

• The de minimis loophole allowed goods worth under $800 to enter the US tariff-free, primarily benefiting imports from China.
• The order, effective May 2nd, necessitates customs verification of a larger volume of packages.
• Supporters argue this move will curb drug smuggling, as illicit substances are sometimes hidden in these shipments.
• Critics foresee potential price increases for consumers and supply chain disruptions.

Impacts

The order's consequences include potential price increases for consumers, delays in shipping, and increased customs processing for businesses.