Biden Proposes Rules to Close Trade Loophole

The Biden administration has proposed new regulations to close the 'de minimis' loophole, which currently allows shipments valued under $800 to enter the U.S. duty-free, significantly benefiting Chinese e-commerce giants like Shein and Temu. This loophole has led to an explosion of low-value shipments from China, growing from 140 million a decade ago to over one billion annually, raising concerns over consumer safety, fair trade, and illegal imports like fentanyl. The new rules would prevent goods subject to U.S. tariffs from exploiting this exemption and require more detailed data from shippers. The changes aim to protect American workers, retailers, and manufacturers, and to ensure compliance with health, safety, and intellectual property laws. Lawmakers have also urged President Biden to use his executive powers to enforce these measures, citing the loophole's role in enabling the import of products made with forced labor and other illegal activities.