Since eliminating the exemption on low-value goods this spring, the US government has collected $1 billion in de minimis tax income, according to fresh statistics that Customs and Border Protection exclusively shared with CNN.
The exemption, which was applicable to items under $800, led to an increase in the number of American consumers using Chinese e-commerce platforms such as Temu, Shein, and Alibaba. However, CBP data indicates that Americans have reduced their purchases since those taxes were implemented.
The loophole for items from China and Hong Kong was first closed by President Donald Trump in May, and it was then extended to all nations’ shipments under $800. Trump claimed that since the packages would be subject to more stringent CBP inspections, it would not only assist the government increase tariff income but also prevent drugs and other illegal products from entering the nation.
Seizures of unsafe and non-compliant low-value goods have increased by 82% since the loophole on goods from China and Hong Kong was closed.” In a statement provided to CNN, CBP stated that they included commodities including hazardous chemicals, defective equipment, counterfeit goods, and medicines.
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