House Democrats Push Biden to End Tariff Loophole Benefiting Chinese Firms

A majority of Democratic U.S. House members urged President Joe Biden to close a tariff loophole allowing low-value packages, primarily from Chinese firms, to bypass customs. The lawmakers argue it facilitates e-commerce exploitation and fentanyl trafficking. Domestic manufacturers also suffer from this provision, leading to plant closures.

A majority of Democratic U.S. House representatives on Wednesday called on President Joe Biden to use his executive powers to end a tariff 'loophole' for low-value packages. Lawmakers allege Chinese e-commerce firms and fentanyl traffickers exploit this loophole.

In a letter, representatives requested Biden end the 'de minimis' trade provision, which allows shipments under $800 to enter the U.S. duty-free and without customs inspections if addressed to individuals. Originally part of the 1930 trade law, the threshold was raised to $800 in 2015, facilitating the growth of firms like Shein and PDD Holdings' Temu.

Led by Earl Blumenauer, Rosa DeLauro, and Tom Suozzi, the lawmakers emphasized the provision's misuse by fentanyl traffickers. They argued de minimis imports evade most trade enforcement mechanisms. Domestic manufacturers, represented by the National Council of Textile Organizations, claim these shipments dodge punitive tariffs, forcing plant closures. A White House spokesperson was unavailable for comment.

(With inputs from agencies.)