USA VS. CHINA: A TUG-OF-WAR OVER DE MINIMIS WITH FAR-REACHING CONSEQUENCES FOR INTERNATIONAL TRADE

The trade climate between the United States and China is once again tense. At issue is the U.S. desire to scale back the exemption from customs duties for small packages, known as minimis. This measure currently allows imports of less than $800 to escape customs duties and controls. A large proportion of these shipments come from China, fuelling Washington’s concerns about unfair trade practices.

STRATEGIC LEVERAGE FOR THE UNITED STATES

Faced with an abysmal trade deficit, the United States is hardening its stance. The Biden administration has already increased tariffs on several strategic sectors, notably electric vehicles and semiconductors.

This revision of the de minimis threshold is part of this protectionist logic, aimed at limiting the influx of low-cost Chinese products. At the same time, antitrust investigations against Chinese companies such as TikTok and Huawei are increasing the pressure on bilateral trade.

AN OFFENSIVE RESPONSE FROM CHINA

Beijing is not remaining passive in the face of these measures. China has retaliated by imposing new tariffs on US imports, including coal, LNG and crude oil. In addition, it is tightening its export controls on minerals essential to the technology industry, a move that could impact many sectors in the United States.

The opening of an antitrust investigation into Google by the Chinese authorities also marks an escalation in this trade war.

WHAT IMPACT ON TRANSPORT AND INTERNATIONAL TRADE?

If the U.S. revises its de minimis tariffs, international logistics flows will be directly affected. The sea and air freight sector could see a significant drop in small parcel shipments, particularly on routes linking China and the United States.

For those involved in international trade, these regulatory changes will require rapid adaptation of supply and distribution strategies.

In this changing context, Balguerie Group expertise is essential to understand these customs issues and optimize supply chains.