President Trump has made it clear that he intends to close a significant loophole in trade regulations that has allowed billions of dollars worth of goods to enter the United States tariff-free. This loophole, known as “de minimis,” permits shipments under $800 to enter the country without facing tariffs, regardless of their country of origin.
To investigate how this loophole has impacted global trade, WSJ’s Jonathan Cheng journeyed to the Yiwu International Trade Market in China, the world’s largest wholesale market. Situated near major ports in Shanghai and Ningbo, this market has become a key player in the flow of cheap goods entering the U.S. market. Brands such as Temu and Shein, popular among consumers for their affordable prices, often source their products from this bustling marketplace on China’s east coast.
The report delves into the workings of the Yiwu International Trade Market and sheds light on why it has drawn the attention of the U.S. government. As trade tensions between the U.S. and China continue to escalate, the spotlight is shining on the practices that have enabled such large quantities of untaxed goods to flood into American markets.
With a focus on the implications of the de minimis loophole and the impact it has had on global trade dynamics, the video explores the challenges faced by Chinese companies in navigating the evolving landscape of international commerce. As the debate over tariffs and trade policies heats up, the role of key players like the Yiwu International Trade Market in shaping the future of trade relations between the U.S. and China remains a crucial point of discussion.
Watch the video by The Wall Street Journal
Video “This ‘Loophole’ Lets $54B of Products Into the U.S. Tariff-Free | WSJ” was uploaded on 02/06/2025 to Youtube Channel The Wall Street Journal