In an important movement, United States President Donald Trump signed an executive order that effectively closes the “Minimis” import rule, which allowed China and Hong Kong low -value packages to enter the United States duty. The order, which hardens on May 2, follows the announcement of Trump to sweep new rates aimed at remodeling world trade.

As a result, the goods coming out of the international postal network will now face standard import rights, while those passing through the postal system will be imposed at 30% of their value or $ 25 per item, with a $ 50 amount of item after June 1.

Trump had signed an initial order on February 1, ending the free rights entry for cheap Chinese goods, but then stopped the order due to logistical problems that complicate the inspection of millions of low -value shipments.

What is the “Minimis” commercial rule?

The Minimis rule, derived from the Latin phrase “by Minimis not cured” (meaning “the law does not worry about the discomfort”), was originally designed to reduce administrative characters by exempting shipments worth $ 800 or less of homework and taxes.

However, the rule has become more and more exploited by Chinese e-commerce giants such as Shein and Temu, allowing them to overcome the rates that traditional importers and national manufacturers have to pay. In dividing larger orders into multiple smaller shipments, the impact of these rates can be reduced or eliminated.

Reuters reported that more than 90% of packages reaching the United States is currently on Minimis, with about 60% from China. Companies have been able to prevent strong import rights, mining North -American companies subject to higher costs.

In addition, the concerns that North -American companies moved to Mexico and Canada, where they received bulk shipments, then seized them on smaller plots for minimis exemptions when they enter the United States. This change threatened the work of North -American warehouse and contributes to the original intention of the rule of supporting the United States economy.

The reform began under the administration of Biden

As a result, the impulse to harden the rules of Minimis has been built beyond the executive order. Last year, up to 126 Chamber Democrats asked President Joe Biden to address worry about low value imports, arguing that these shipments “evade inspection, information dissemination requirements or necessary rates and taxes”. Shortly afterwards, the White House proposed to change the rule and urged Congress to take legislative actions. The legislators on both sides have introduced invoices in order to reestablish rates in various products that currently enter without duty.

The impact

Trump’s order marks the most aggressive movement yet to close this gap, imposing homework on shipments of less than $ 800 that before the rates escaped. The White House defended the play as needed to create a pitch.

Although this movement is expected to level the pitch for domestic companies, critics warn of possible price increases and disturbances from e -commerce supply chains. Domestic manufacturers seem to have welcomed the change, seeing it as a long-term measure to stop unfair competition.