tw0122
6 days ago
YANG me up to $100 on this news.... Trumpโs executive orders directing 25% levies on Canada and Mexico โ plus a 10% duty on China โ specify that the โde minimisโ exemption for small packages no longer applies. Under the exemption, products below that dollar amount are able to enter the US without tariffs โ a boon for Chinaโs e-commerce retailers who ship often cheaper wares directly to consumers in the US.
Regardless, the impact of the change threatens to fall most squarely on China, affecting retailers including Alibaba, JD.com Inc., PDD Holdings Inc.โs Temu and fashion-focused Shein. American shoppers and companies imported about $48 billion worth of shipments from the world under that loophole in the first nine months of last year, according to US Customs and Border Protection estimates.
Approximately a billion packages are estimated to enter the USA under the cover of the de minimis exemption.
This is where the enforcement mechanism of the โExternal Revenue Serviceโ combines with the tariff approach and the โstate of emergency.โ President Trump imposed the tariffs under the International Emergency Economic Powers Act, a nearly 50-year law that gives the president sweeping power to impose sanctions after declaring an emergency.
The de minimis loophole comes from back in the 1930s. The idea back then was, say you went on a vacation to Paris, you shouldnโt have to file customs paperwork or pay taxes if you decided to ship some little Eiffel Tower statues to your friends back home.
Congress in 2015 then raised the de minimis threshold from $200 to $800. However, the e-commerce world exploded, and Chinese companies began using the de minimis loophole to ship cheap goods (ex. Temu and Shein) into the USA direct to consumers without paying any customs duty.
It was reported last year that the U.S. was on track to receive a billion packages through the de minimis loophole that arenโt taxed and donโt have customs slips saying what they are. Making matters worse, illegal items are slipping through the cracks, including, knockoffs, unsafe items and even chemicals used to make fentanyl. The worst abuser that exploits this de minimis loophole is, by far, China.
qwertytrader
2 months ago
Chinaโs Consumer Inflation Weakens Ahead of Key Economic Meeting - Like i said, this downward move is fabricated.
Article Here
Chinaโs consumer inflation unexpectedly decelerated in November while factory deflation eased, painting a mixed picture of the effects of recent stimulus efforts on the economy ahead of key policy meetings this week.
The consumer price index rose a less-than-forecast 0.2% from a year earlier, the lowest since June, while core inflation picked up slightly. Factory deflation extended into a 26th straight month, though the producer price index recorded a slower drop of 2.5% compared to October.
YANG