How Much Are Other Countries Being Charged? China Angle

TARIFFS Aim Well-paying jobs for American workers, particularly in industries like steel, autos, and technology

How Much Are Other Countries Being Charged?

FinTech BizNews Service

Mumbai, April 3, 2025: President Donald J. Trump on 2nd April, 2025 signed an Executive Order eliminating duty-free de minimis treatment for low-value imports from China, a critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids into the U.S.

CLOSING LOOPHOLES IN THE TARIFF SYSTEM:

As per the details on the website of 'The White House', following the Secretary of Commerce’s notification that adequate systems are in place to collect tariff revenue, President Trump is ending duty-free de minimis treatment for covered goods from the People’s Republic of China (PRC) and Hong Kong starting May 2, 2025 at 12:01 a.m. EDT.

• 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, which shall be paid in accordance with applicable entry and payment procedures.
• All relevant postal items containing goods that are sent through the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption are subject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025). This is in lieu of any other duties, including those imposed by prior Orders.

• Carriers transporting these postal items must report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure duty payment, and remit duties to CBP on a set schedule.
• CBP may require formal entry for any postal package instead of the specified duties.
• The Secretary of Commerce will submit a report within 90 days assessing the Order’s impact and considering whether to extend these rules to packages from Macau.

 
COMBATING CHINA’S ROLE IN THE OPIOID CRISIS: 

President Trump is targeting deceptive shipping practices by Chinese-based shippers, many of whom hide illicit substances, including synthetic opioids, in low-value packages to exploit the de minimis exemption.

• On average, CBP processes over 4 million de minimis shipments into the U.S. each day.
• The Chinese Communist Party (CCP), which exerts ultimate control over the government and enterprises of the PRC, has subsidized and otherwise incentivized PRC chemical companies to export fentanyl and related precursor chemicals that are used to produce synthetic opioids sold illicitly in the United States.
• Many PRC-based chemical companies hide illicit substances in the flow of legitimate commerce, including through false invoices, fraudulent postage, and deceptive packaging.
• While the U.S. previously offered a generous de minimis exemption, China enforces strict import restrictions and tightly limits de minimis exemptions, showing no similar leniency toward U.S. shipments.
• Last fiscal year, CBP apprehended more than 21,000 pounds of fentanyl at our borders, enough fentanyl to kill more than 4 billion people.
  • It is estimated that federal officials are only able to seize a fraction of the fentanyl smuggled across the southern border. 
• These drugs kill tens of thousands of Americans each year, including 75,000 deaths per year attributed to fentanyl alone.
  • More Americans are dying from fentanyl overdoses each year than the number of American lives lost in the entirety of the Vietnam War.

 
KEEPING HIS PROMISE TO THE AMERICAN PEOPLE: 

When voters overwhelmingly elected Donald J. Trump as President, they gave him a mandate to seal the border and stop the influx of deadly drugs. That is exactly what he is doing.

• On the campaign trail, President Trump promised “We will not rest until we have ended the drug addiction crisis.”
• Upon returning to office, President Trump immediately took action to seal the border and crack down on drug trafficking.
• President Trump implemented 20% tariffs on China to address the threat of the sustained influx of synthetic opioids, including fentanyl, flowing from China into the United States

How much are other countries being charged?

• President Donald J. Trump has declared that foreign trade and economic practices have created a national emergency, and his order imposes responsive tariffs to strengthen the international economic position of the United States and protect American workers.

  • Large and persistent annual U.S. goods trade deficits have led to the hollowing out of our manufacturing base; resulted in a lack of incentive to increase advanced domestic manufacturing capacity; undermined critical supply chains; and rendered our defense-industrial base dependent on foreign adversaries.

  • President Trump is invoking his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to address the national emergency posed by the large and persistent trade deficit that is driven by the absence of reciprocity in our trade relationships and other harmful policies like currency manipulation and exorbitant value-added taxes (VAT) perpetuated by other countries.

    • Pernicious economic policies and practices of our trading partners undermine our ability to produce essential goods for the public and the military, threatening national security.
    • U.S. companies, according to internal estimates, pay over $200 billion per year in value-added taxes (VAT) to foreign governments—a “double-whammy” on U.S. companies who pay the tax at the European border, while European companies don’t pay tax to the United States on the income from their exports to the U.S.
    • The annual cost to the U.S. economy of counterfeit goods, pirated software, and theft of trade secrets is between $225 billion and $600 billion. Counterfeit products not only pose a significant risk to U.S. competitiveness, but also threaten the security, health, and safety of Americans, with the global trade in counterfeit pharmaceuticals estimated at $4.4 billion and linked to the distribution of deadly fentanyl-laced drugs.
      • This imbalance has fueled a large and persistent trade deficit in both industrial and agricultural goods, led to offshoring of our manufacturing base, empowered non-market economies like China, and hurt America’s middle class and small towns. 
      • President Biden squandered the agricultural trade surplus inherited from President Trump’s first term, turning it into a projected all-time high deficit of $49 billion.
    • The current global trading order allows those using unfair trade practices to get ahead, while those playing by the rules get left behind.
    • In 2024, our trade deficit in goods exceeded $1.2 trillion—an unsustainable crisis ignored by prior leadership.
    • “Made in America” is not just a tagline—it’s an economic and national security priority of this Administration. The President’s reciprocal trade agenda means better-paying American jobs making beautiful American-made cars, appliances, and other goods.
    • These tariffs seek to address the injustices of global trade, re-shore manufacturing, and drive economic growth for the American people.
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    • How does the Executive Order impact Americans?

      Job creation: By incentivizing manufacturing to return to the U.S., it aims to create well-paying jobs for American workers, particularly in industries like steel, autos, and technology.

      Economic growth: Fairer trade practices and reduced dependence on imports strengthen the U.S. economy, boosting household incomes and increasing opportunities for small towns and middle-class communities.

      Fairer trade deals: By tackling tariff and non-tariff barriers, it levels the playing field, ensuring U.S. businesses can compete globally and thrive.