Former economist Reagan, Art Laffer, discusses President Donald Trump’s agreement with China for a reduction in 90 -day prices on “The Bottom Line”.
The United States reduces the “minimis” price on cheap goods from China “from 120% to 54%”, according to a new decree signed by the President Donald Trump.
Development comes after the two countries concluded a trade agreement In which the United States will temporarily reduce its prices on Chinese products from 145% to 30%, while China will reduce its levies from American products from 125% to 10%.
Trump previously eliminated what was known as the “minimis” exemption where imports assessed at $ 800 from China and Hong Kong were not subject to prices or necessary to undergo rigorous customs checks. The newly signed decree will now bring a certain relief to Chinese electronic commercial companies such as Shein and Temu.
From Wednesday, the “minimis” rate will increase from 120% to 54%. Stable costs of $ 100 per package will remain in effect, but that will not have increased to $ 200 on June 1 as announced previously, the Executive decorms.
An employee has clothing for the Chinese Electronic Commerce Company TEMU in a clothing factory in Guangzhou, China, April 16. (Jade Gao / AFP via / Getty Images)
Reuters, Citing two delivery experts, also reported on Wednesday that packages of commercial sender such as UPS, Fedex and DHL – which have managed millions of items from Shein and TEMU – will now be by default at the rate rate of 30% that the price rate of 30% The United States has imposed on China.
The White House did not immediately respond to a request for comments from Fox Business on Thursday.
The “minimis” escape “has already been criticized for having enabled expeditions of fentanyl precursors to enter the country.
Workers make clothes in a clothing factory that provides Shein in Guangzhou, China, in July 2022. (Jade Gao / AFP via / Getty Images)
The White House has said that many Chinese shipments hide illicit substances, including synthetic opioids, in low value packages to exploit the minimis exemption.
Shein and Temu have experienced rapid growth on the American market thanks to rapidly fashion minimis, toys and other consumer goods to consumers who are consumed.
A woman receives her order from the SHEIN fast -fashioned electronic commerce company. (Rodrigo Arangua / AFP / Getty Images)
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A report by the Congressional Research Service noted that Shein and Temu combined to represent around 17% of the American network market in November 2023.
Michael Dorgan, Landon Mion and Reuters contributed to this report.
