US Tax Bill to End Duty-Free Imports of Cheap Foreign Goods

House Republicans have proposed using their giant tax and spending bill to end duty-free imports of cheap foreign goods, a move that would eliminate a perk companies around the world have used to grow their US business for the last decade.

The provision, tucked into legislation key House committees are debating this week, would put into law — and expand — Donald Trump‘s executive order, effective May 2, halting the “de minimis” exemption on Chinese imports valued at less than $800.

The bill, which House leaders plan to pass in the coming weeks, would impose a civil penalty of up to $10,000 for companies that bring in illegal goods.

Small businesses and e-commerce companies say they rely on the de minimis exemption to meet their bottom lines. The exemption has fuelled profits for online marketplace giants like Shein and Temu.

But others, especially brick-and-mortar retailers, argue that it undermines them by allowing competitors to sell cheaper goods. Critics also say the exemption makes it easier for foreign adversaries to smuggle illegal products into the country.

The elimination of de minimis has garnered support in both parties. Representative Linda Sanchez, a California Democrat, introduced legislation in March to remove the de minimis treatment with a transition period of four months. A bipartisan group of senators proposed a bill to tighten import requirements in 2024.

By Alicia Diaz

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