President Donald Trump intensified his trade policy initiatives by signing two significant executive orders targeting international commerce and trade relationships.
According to Breitbart, the executive orders will eliminate the de minimis loophole that previously allowed duty-free entry of packages valued under $800 and increase tariffs on Brazilian imports to 50 percent. These measures are set to take effect in August 2025.
The de minimis threshold, which was raised from $200 to $800 during the Obama administration, has been a contentious issue in international trade. This loophole has enabled companies, particularly Chinese manufacturers, to flood the U.S. market with low-value shipments while avoiding customs duties and proper inspection protocols.
The new executive order implements strict duty requirements for all incoming shipments regardless of value. The White House fact sheet outlines two methods for collecting duties: an ad valorem duty based on the product's country of origin, or a specific duty ranging from $80 to $200 per item.
Chinese companies like Shein and Temu have extensively utilized this loophole to ship products directly to American consumers. These operations have managed to bypass traditional distribution networks and undercut U.S. businesses by avoiding standard tariffs and regulations.
The administration argues that the current system has created security vulnerabilities. Senior White House officials point to the reduced inspection requirements for de minimis packages as potential channels for counterfeit goods and dangerous substances like fentanyl.
The executive order targeting Brazil marks a significant escalation in diplomatic tensions. The increased tariffs from 10% to 50% are being implemented under the International Emergency Economic Powers Act of 1977.
The White House cites concerns over the Brazilian government's treatment of former President Jair Bolsonaro and his supporters. The administration characterizes these actions as "politically motivated persecution" that undermines the rule of law in Brazil.
Trump's order declares a national emergency to address what it terms as Brazil's "unusual and extraordinary policies" that harm U.S. companies, free speech rights, and economic interests.
In a related move, Trump signed a proclamation imposing a universal 50% tariff on semi-finished copper products. This measure will take effect immediately and impacts all countries exporting these materials to the United States.
The copper tariffs represent another step in the administration's broader strategy to protect domestic industries. The move signals a continuation of Trump's aggressive trade policies aimed at reshaping global commerce relationships.
The decision adds another layer to the complex web of international trade regulations being implemented by the administration.
These executive orders represent a significant shift in U.S. trade policy that will affect multiple sectors of the global economy. The elimination of the de minimis loophole specifically targets the growing e-commerce sector and direct-to-consumer international shipping practices.
The increased tariffs on Brazil, coupled with concerns over political persecution, indicate a willingness to use economic measures to address diplomatic issues. This approach combines trade policy with foreign policy objectives in a way that could reshape international relations.
The combination of these measures, including the new copper tariffs, demonstrates the administration's commitment to using economic tools to advance both domestic and international policy goals. The impact of these changes will likely reverberate through global supply chains and international trade relationships for years to come.
