Trump’s New Tax Is in the Mail

The abolition of the de minimis exemption means you’ll soon be paying more for everything you buy from abroad

By Phillip W. Magness and Alberto Mingardi. Excerpts:

"the White House is trying to justify its order by saying the de minimis exemption is abused to send fentanyl and other synthetic opioids undetected. The vast majority of fentanyl smuggled into the U.S. comes from one country: Mexico. But Mr. Trump is ending the de minimis exemption for packages from all countries. Although fentanyl is a deadly drug, there’s no evidence that taxing worldwide e-commerce will stop drugs from entering the U.S."

"The European Union has been targeting Temu and Shein, another low-cost Chinese platform, under the guise of “consumer protection.” The EU alleges that these platforms distribute “illegal” goods. But, in many cases, “illegality” means little more than failing to meet the EU’s notoriously complex product-labeling regulations or falling short of its Byzantine labor and environmental rules."