Biden Administration Moves to Curb Chinese E-Commerce Tariff Evasion

The Biden administration aims to limit low-value shipments entering the U.S. duty-free under the $800 'de minimis' threshold, commonly used by Chinese firms like Shein and Temu. The new rule would deny exemptions on items subject to tariffs, enhancing scrutiny on small packages to curtail illegal imports and protect American businesses.

The Biden administration announced measures on Friday to limit low-value shipments entering the U.S. duty-free under the $800 'de minimis' threshold, exploited by Chinese e-commerce companies Shein and PDD Holdings' Temu. White House officials will propose a new rule to deny exemptions on items subject to various Section tariffs, including those on Chinese goods and steel products.

The proposed rule requires new information disclosures for small packages to help U.S. Customs and Border Protection agents identify illicit products like precursor chemicals for fentanyl. Commerce Secretary Gina Raimondo emphasized that American businesses can outperform global competition when the playing field is fair.

This move follows Democratic lawmakers' calls to close the de minimis provision, labeling it a loophole for Chinese imports to evade tariffs. Raised from $200 to $800 in 2015, the volume of packages under the threshold has surged, largely from Chinese e-commerce firms, creating challenges for U.S. customs enforcement.

(With inputs from agencies.)