President Donald Trump signed a pair of executive orders on Wednesday–one to close the de minimis loophole, which long exempted low-value import shipments into the United States from duties, and another to hike tariffs on Brazil to 50 percent.
The Suspending Duty-Free De Minimis Treatment for All Countries eliminates the loophole that has allowed shipments of goods valued under $800 to enter the United States tariff-free.
“Effective August 29, imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties,” a White House fact sheet states.
Duties will be imposed through one of the following methods, per the document:
- Ad valorem duty: A duty equal to the effective tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) that is applicable to the country of origin of the product. This duty shall be assessed on the value of each package.
- Specific duty: A duty ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate applicable to the country of origin of the product. The specific duty methodology will be available for six months, after which all applicable shipments must comply with the ad valorem duty methodology.
A senior White House official previously told Breitbart News that de minimis packages are often not inspected, enabling the shipments of counterfeit goods and substances like fentanyl into the United States. Cheap manufactured products, including Chinese-produced nicotine vapes, have flooded into the United States through the loophole, undercutting American companies like Juul, as just one example.
The de minimis threshold was raised from $200 to $800 during former President Barack Obama’s administration, as Breitbart News’s John Hayward previously noted:
The dramatic increase in the de minimis threshold created enough room for entirely new industries to appear, and those industries were utterly dominated by China. Thanks to Internet shopping and electronic payments, companies like Shein and Temu began shipping gigantic volumes of cheap merchandise directly to American consumers without any need to maintain distribution centers in the United States.
Trump’s other order on Wednesday, Addressing Threats to the United States from the Government of Brazil, raises tariffs on Brazil from 10 percent to 50 percent beginning on August 6 through the International Emergency Economic Powers Act of 1977 (IEEPA). A White House fact sheet highlights the Brazilian government’s “persecution” of former President Jair Bolsonaro:
- The Order declares a new national emergency using the President’s authority under the International Emergency Economic Powers Act of 1977 (IEEPA) and establishes an additional 40% tariff to address the Government of Brazil’s unusual and extraordinary policies and actions harming U.S. companies, the free speech rights of U.S. persons, U.S. foreign policy, and the U.S. economy.
- The Order finds that the Government of Brazil’s politically motivated persecution, intimidation, harassment, censorship, and prosecution of former Brazilian President Jair Bolsonaro and thousands of his supporters are serious human rights abuses that have undermined the rule of law in Brazil.
Trump also signed a proclamation Wednesday to impose a universal 50 percent tariff on semi-finished copper products imported into the U.S. beginning Friday.
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