Known as minimis exemption, it was used by the Chinese shopping giants Shein and Temu to send millions of packages to the United States each year, helping to maintain the prices of their products for Americans. But the exemption is also important for markets like Ebay and Etsy which allow people in the United States to buy goods from sellers based in China.
The removal of the measure can also have a negative impact on Amazon, which recently launched a division for affordable products in Chinese which directly compete with TEMU and Shein. Amazon did not immediately respond to a request for comments.
Trump tried to remove the disposition from Minmis for Chinese plans in February via a separate decree, but quickly fell the measure after it became clear that customs and the protection of American border did not have the resources in place to inspect millions of additional packages per day and ensure that the correct associated prices were paid. His new order indicates that the exemption from a franchise of rights will disappear on May 2, giving CBP for a few weeks to prepare.
Ram Ben Tzion, co-founder and CEO of Publican, a digital shipping verification platform, says that he thinks that Trump intends to use Minmis elimination as a negotiation currency in negotiations with China, because if the policy is really deleted and replaced by high prices, it could radically remodel the online purchases because the Americans know it.
“The extent and importance of this, if they come into force, is gigantic,” explains Ben Tzion. “This could considerably change electronic commerce. This could considerably change some of the giants that we have known in recent years. ”
However, some technological companies, in particular those already rooted in fields such as logistics and data analysis, can see opportunities in Trump’s trade policies. Almost immediately after the announcement of the prices, the defense entrepreneur Palant has published a blog article promoting an artificial intelligence service that the company boasted joined “a wide range of data sources” to help companies ensure that “decisions related to the rate examine the full operational context”.
Jay Gerard, chief of customs and logistics of the technological and logistical startup based in Mexico City, Nuvocargo, says that if he “hates prices”, they have created more demand for his business services. Nuvocargo works as a freight broker between Mexico and the United States, and sells software that helps customers pass their property through the American border. This also helps them to process customs documents. The company now provides for an increase in customer activity for April, May and June, predicting that prices will strengthen business.
However, last month was the “chaos” for importers and sender, said Gerard, leaving many of them in expensive detention models. At the beginning of March, Truma stuck a 25% rate on Mexican and Canadian imports, to bring it back a few days later. During this short time, said Gerard, if a truck of goods crossed the border, the importer paid the costs.
“If they imported $ 100,000 in drinks that day,” he said, “they paid $ 25,000 in rights. If the truck crossed a day later, it disappeared. ”
