U.S. Eyes Closing Tax Loophole Driving Flood of Low-Cost Chinese Imports

• US concerned about flood of low-value Chinese imports exploiting "de minimis" tax exception for items under $800 • Chinese e-commerce giants like Shein and Temu account for over 30% of 1+ billion parcel imports using this loophole • Loophole allows avoiding tariffs on Chinese goods imposed by Trump and kept by Biden • Weak Chinese domestic demand and excess capacity driving export of cheap consumer goods • US considering responses from small fees to outright bans on Chinese parcel imports over this issue