Tariffs are among the hotly debated issues in the United States Presidential election this year. Donald Trump has said that if elected, he will increase tariffs on imports of products from outside China, which he says uses an exemption loop to avoid paying high taxes. The White House recently announced a plan to withdraw tax exemptions on imports of goods from China.
Previously, imports of goods worth less than $800 were granted relief when imported into the United States. This allows e-commerce sites like Shein and Temu to flood the American market with cheap products, thus affecting local merchants who cannot compete with the prices offered. Following this new plan, companies from China will no longer be given tax relief.
This is another introduction of tariffs by the United States to curb Chinese companies. America has already imposed tariffs of up to 100% on electric vehicles (EVs), solar panels, semiconductors, graphics cards, motherboards, and PC frames made in China this year.