Biden targets China’s Temu, Shein with low-value import duty exemption changes

Contentious exemptions to be stripped from many textile, clothing and other imports, in a move aimed at Chinese e-commerce platforms

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The number of shipments coming into the US under the de minimis provision has soared, with e-commerce platforms Temu and Shein alone estimated to account for more than 30 per cent of packages. Photo: Reuters

Published: 7:00pm, 13 Sep 2024Updated: 10:29pm, 13 Sep 2024

The White House has announced new measures – largely aimed at Chinese e-commerce platforms like Temu and Shein – to reduce the range of low-value imports eligible for duty and tax exemptions, and has also formally approved significant tariff hikes on billions of dollars worth of Chinese imports.

Daleep Singh, the deputy national security adviser for international economics, said the e-commerce measures address the increasingly contentious de minimis rule, which exempts shipments valued under US$800 from import duties, taxes and rigorous screening.

In a briefing on Thursday, Singh said the White House actions “seek to remove de minimis eligibility for products subject to trade enforcement actions under Section 301, section 201, and section 232, bringing consistency across our US trade laws”.

“Since approximately 70 per cent of Chinese textile and apparel imports are subject to section 301 tariffs, this step will drastically reduce the number of shipments entering through the de minimis exemption,” he said, noting the intent was to “curtail de minimis overuse and abuse”.

In 2018, then-president Donald Trump imposed tariffs of 7 to 25 per cent on US$300 billion of Chinese imports under Section 301 of the Trade Act of 1974, citing “unfair” trade practices.

His successor Joe Biden retained most of these tariffs and expanded them to include Chinese solar panels, electric vehicles and batteries – with proposed tariffs on electric vehicles reaching up to 100 per cent.