The panelists of “The Big Money Show” weigh on the pricing threats of President Donald Trump and their impact on the world economy.
President Donald Trump The new prices include a provision that suspends a key commercial escape that Chinese retailers like Shein and Temu used to extend their access to American consumers and were criticized for authorizing the expeditions of fentanyl precursors to enter the country.
Trump executive orders Imposing prices On China, Canada and Mexico on Tuesday, there was the language suspended on the so-called “minimis” escaper on Tuesday which allows import shipments assessed at less than $ 800 to enter the United States without rights and taxes of these three countries. Trump paused the prices on Mexico on Monday for a month after the country’s president, Claudia Sheinbaum agreed to send 10,000 soldiers to the American-Mexican border.
The minimis rule reduces administrative charges on low -cost imports. In 2015, the Obama administration raised the renunciation threshold of $ 200 to current $ 800 – which led to shipping to claim Minmimis renunciation of more than 600% over the past decade to more than one Billion items during the 2023 financial year, according to customs data data and the protection of American border (CBP).
Chinese electronic commerce giants Shein and TEMU have experienced rapid growth on the American market thanks to rapid fashion shipments, toys and other consumer goods at consumers concerned about costs. A report by the Congressional Research Service (CRS) noted that Shein and Temu combined to represent around 17% of the American network market in November 2023.
Shein pressure, Temu Accelerate retail closings
Chinese electronic commerce platforms Shein and Temu used the minimis flaw. (Davide Bonaldo / Sopa Images / Lightrocket via Getty Images | Jakub Porzycki / Nurphoto / Fox News)
The climb Shein and Temu contributed to an increase in retail store closings in the United States, according to a Coresight Research report. He estimated that around 15,000 closures will take place in 2025 after 7,323 closures in 2024 – which was the largest number of closures since 2020, when nearly 10,000 stores have closed.
The reduced control of minimis shipments has also been linked to Fentanyl paintingA synthetic opioid that killed nearly 75,000 people in 2023.
A survey by Reuters journalists last year revealed that they were able to use Minmimis flaw to import the main pioneering chemicals for at least 3 million fentanyl tablets due to specialists abroad Envantly wrong to confuse the electronics packages.
President Donald Trump’s prices on China, Canada and Mexico have closed the so -called “minimis” escape for the lower cost imports of these countries. (SOMODEVILLA / GETTY Images)
“The flow of illicit drugs like fentanyl in the United States through illicit distribution networks and international mail – due, in the case of the latter, to the existing administrative exemption from rights and taxes, also known by Name of Minis on Canada has said.
The problems with the escape of minimis drew the attention of the convention and the previous administrations.
Earlier this month, the outgoing Biden administration proposed a rule which would eliminate the treatment of minimis of goods from China which are subject to prices, while obliging the sender to include 10 -digit pricing codes on the packages in order to facilitate the identification of the customs authorities to identify and prohibit illegal products.
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Legislators have also raised fears that the escape has enabled Chinese companies to send products using the minimis flaw and escape a meticulous examination under the Ouïghur Forced Labor Protection Act (UFLPA). This law aims to prevent the goods produced by the Forced Uighours workA Muslim minority persecuted by the Chinese Communist Party, from entry into the American market.
Reuters contributed to this report.
