The tariffs imposed in 2018 during Donald Trump's presidency have largely remained intact under President Biden's administration. Over the past six years, US trade data indicates that these tariffs have effectively reduced the US trade deficit with the Chinese mainland and redirected imports to other global markets.
Despite these measures, Chinese mainland exports to the United States have seen a nearly 10% increase from 2018 to 2024. Experts suggest that this unexpected rise, referred to as the \"import gap,\" is largely due to the US de minimis exemption. This policy allows small Chinese parcels to enter the US duty-free, bypassing detection in official trade statistics.
Analysts believe that the de minimis exemption undermines the intended effects of the tariffs, as a significant volume of imports remains unaccounted for. This loophole not only complicates trade relations but also poses challenges for accurate economic assessments.
As both nations navigate these complexities, the ongoing trade tensions highlight the intricate balance between regulatory measures and global trade dynamics. The situation underscores the need for comprehensive strategies to address underreporting and ensure fair trade practices.
Reference(s):
China and US at odds over tariff effects amid undercounted imports
cgtn.com
