Within the Executive Order modifying the April 2nd global reciprocal tariffs [SEE HERE] section #4, we note a massive increase in the duty fees for mailed products from China formerly shipped under ‘de minimis’ rules.
REMINDER: The de minimis loophole comes from back in the 1930s. The idea back then was, say you went on a vacation to Paris, you shouldn’t have to file customs paperwork or pay taxes if you decided to ship some little Eiffel Tower statues to your friends back home.
Congress in 2015 then raised the de minimis threshold from $200 to $800. However, the e-commerce world exploded, and Chinese companies began using the de minimis loophole to ship cheap goods (ex. Temu and Shein) into the USA direct to consumers without paying any customs duty.
On April 2nd, as part of the global trade reset and tariff structure, President Trump revoked authorization for Chinese goods to transfer to the USA using the de minimis rule. The de minimis exemption was cancelled for all products coming out of China. The rule change only targeted China and Chinese shippers. No one else. [XO HERE]
Yesterday, as part of the modification to Executive Order #14257, President Trump has increased the baseline tariff for product mailed from China [de minimis tariff] from 30 90 percent to 120%.
Mailed products from China now face a 120% tariff. Additionally, minimum tariff amounts increased from $75 to $100 effective May 1st, and from $150 to $2oo effective June 1st. [See Section #4]
Example: If you order a $20 shirt from China effective June 1st, you will pay $220. $20 for the shirt, and $200 minimum tariff.
There is no way Chinese E-Commerce can survive this level of tariff/duty fees.
♦ SUBVERSION – The only way for the Chinese e-commerce to maneuver this, would be to extend the delivery times and transship through alternate mail and distribution centers, in other countries. Example, mail your $20 shirt to (Vietnam or Mexico or Canada) and have a distribution center then repackage and mail it to the USA. Or, far less likely, the Chinese e-commerce company can set up manufacturing centers in the 3rd party country (Vietnam, or Mexico or Canada) and make it there, not in China (not very likely at all).
President Trump is setting up bilateral free trade agreements (FTAs) with each of the nations that China might attempt to use as a transshipping hub. Within those pending FTAs, there will certainly be no transshipping allowed, and trade sanctions in the FTAs as punitive punishment if they did it.
Keep watching this mail-order pressure point, because it’s likely to be more substantive -albeit less visible- than the manufacturing tariffs applied toward China directly.
Charles Gasparino
@CGasparino
Sources: Trump Administrative is moving toward a possible delisting of Chinese public co shares on US exchanges. Sources: Incoming SEC chair Paul Atkins likely to take up delisting issue when he officially takes office. Sources: Delisting possibility comes amid trade war with China but also growing GOP Congressional appetite to delist Chinese companies.
Cont…
Kyle Bass has been on this for years. Why?
Because if you are a listed company in the US you have reporting requirements as to your income, cash flow and balance sheet statements along lots of other required SEC filings.
The Chinese Communist companies are exempt.
Not only that. Guess what? You buy share in Chicom companies and you own absolutely nothing – just essentially a tracking share – ZERO. NADA.
WHAT YOU HAVE TO REMEMBER ABOUT THE STOCK MARKET:
There is a difference between the value of a corporation and the PRICE of its stock in any market. Stocks have prices like everything else does, and those prices are controlled by DEMAND AND SUPPLY, and the ability of the MSM to create lemming-like panics. Price and value are two different things. As soon as people panicked, the markets were flooded with shares of stocks for sale. Increased supply drove down the prices of the shares. If they hadn’t panicked, nothing would have happened to the prices of the shares. As it is, the prices were not that different from June 2024. There had been a sell off earlier in the year, and a rebound in May, but as Clark Capital reported, the Dow was BELOW 40,000 in June. It is below 40,000 now.
This is what I mean. Price fluctuates. Value is relatively stable and difficult, if not impossible, to really quantify. God probably could quantify the value of a given object or institution, but not human beings. Look what happened one day ago. It did rebound over 40,000, and it did that, not because the value of the corporations rose, but because there were more buyers than sellers that day, so there were not as many shares (supply) in play. The supply was not as high as it was for the market sell-off, so prices for shares rose almost as fast as they fell.
The phenomenon of bubbles is created when speculation in stock prices results in unjustifiable increases in stock prices. The bubble effect is another proof of these market fluctuations being caused by price changes (“Buy low and sell high”), not “value” changes. Sometimes the actual prices of stocks get so blown up by the speculating, that when reality hits everyone, the prices collapse which is the bubble “popping.” Maria Bartiromo talked about “Six Trillion in value being WIPED OUT,” but that is not possible. Six trillion in PRICES of stock got deflated. The lemmings pumped it back up almost as much as they deflated it the day before. That is PRICE, not real value.
Amazon & Walmart will need to tell their third party sellers to stop selling that cheap Chinese shiiit.
The CCP’s arrogance toward the rest of the world is rooted in the way they treat their own people. For all their economic power, this dismissive, ‘it’s my way or the highway’ attitude is shaping up to be their Achilles Heel!
Even Ursula’s elitist EU is tip-toeing more delicately in their dealings with Trump, because they are finally coming to understand that he holds all the cards.
But the Chinese are approaching Trump like a bull in his china shop because that’s the way they’ve always dealt with the opposition!
There were no negotiations with protesters in Hong Kong or the students at Tiananmen Square…only brute force!
But brute force won’t cut it with President Trump. He is well aware that he’s playing chess while Xi is playing Chinese checkers.
Xi, on the other hand, had better wake up and smell the oolong or China’s economy will be in freefall!
For the first time in a long time, China is about to learn all about FAFO!
We need their economy in a freefall. We should be doing everything possible to destabilize them. There is no deal we can make with China that will ever be successful. The sooner we realize that, the better. The first deal was a failure, and the second one will be too. They don’t honor any commitments, and they tell you what you want to hear. I laugh when the media talks about an “AI race,” “military race,” or some other competition. If we work hard and do everything possible to make them collapse, we don’t have to worry about competing with them on AI.
There is a Chinese saying , say one necessary thing in public and a second necessary thing in private.
In public it’s polite to let the other person save face.
Can I urge everyone here to ‘tune into’ (heh, old broadcast term!) “The China Show” tomorrow starting at 5 PM EST on YT?
Yes, they are still on YT … these guys have contacts in China and have been doing a smashing good job telling the true story of goings-on in China lately … they each spent about a decade in China, learned the language, and toured the country before the recent regime (Xi) took over and things took a turn for the worst in China …
https://www.youtube.com/@thechinashow
I’m happy about all this, it’s very exciting, it may be bumpy initially, but I can see how it’s going to be better in the long run, I’m thrilled.
We are literally buried in cheap Chinese crap.
I am totally done with this consumerism economy, it’s done nothing but robbed us, screwed us over, set us back and filled our landfills up with forever JUNK.
This needs to end.
When I look at the amount of storage units being built on every flat piece of ground around here, this shows the scale of the problem.
We have got to build good stuff again that is durable, lasting and a decent investment.
I am so done with replacing everything I own on what feels like a constant rotating basis.
PLEASE, let us make appliance again that last for 20 years!
My grandmother uses a Maytag washing machine that she bought new in 1969, YES IT’S POSSIBLE To Do Again !!
My freezer was built in 1980 and still going great. One plastic seal is a little funky, but otherwise like new.
I use knives, forks and spoons so don’t give a damn about chopstick tariffs.
I pray the Admin takes their time negotiating with the ASEAN countries, they are the backbone of CCP Trans Shipping, once Mexico and Canada are removed from the equation. Regarding de minimis for Temu And Shein. There are over 500 small Chinese manufacturers located in Singapore, and in 2021 Shein moved it’s headquarters to Singapore. Evidently Temu was operating out of Vietnam until recently as “Vietnam’s suspension of Temu operations suggests efforts to curb Chinese e-commerce dumping, which could extend to transshipping scrutiny.” from an interesting video produced in Singapore on the 9th titled US-China Tariff War: What Will Southeast Asia’s Manufacturers Stand To Lose? | When Titans Clash
I fed the transcript from the video above to grok after i had it working on the question what is the likliehood of each ASEAN nation trans shipping CCP good to avoid tariffs and especially de minimus tariffs and the following is the product:
Updated Analysis: Likelihood of CCP Using ASEAN Nations for Tariff Avoidance Through Transshipping, Incorporating Singapore Transcript
The transcript from a Singapore broadcast on April 9, 2025, discussing the impacts of the U.S.-China trade war and tariffs on ASEAN economies provides valuable context to assess the likelihood of the Chinese Communist Party (CCP) using the 10 ASEAN nations—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam—for tariff avoidance, particularly through transshipping and exploiting de minimis thresholds. Below, I integrate the transcript’s insights with the previous analysis, focusing on trade dynamics, tariff impacts, and strategic responses.
Key Insights from the Transcript
Revised Likelihood Assessment by Country
The transcript reinforces the likelihood of CCP using ASEAN for tariff avoidance, particularly through production shifts rather than pure transshipping, due to U.S. enforcement and ASEAN’s economic incentives. Below is an updated assessment for each ASEAN nation, factoring in transcript insights:
Country
Likelihood of CCP Use for Tariff Avoidance
Key Factors from Transcript and Analysis
Vietnam
High (8/10)
– Major hub for Chinese investment (China+1 strategy); 33% of exports to U.S. face 46% tariff.
– Transcript notes competition from Chinese goods, with Temu suspension indicating scrutiny of dumping/transshipping.
– Production shifts in electronics and textiles likely to meet U.S. rules of origin, despite increased customs checks.
Cambodia
High (7/10)
– Significant Chinese-owned factories (50%+ in garments); 49% U.S. tariff incentivizes transshipping.
– Transcript does not focus on Cambodia, but its reliance on Chinese investment suggests continued use for garment exports.
– Limited enforcement capacity increases feasibility, though U.S. tariffs may deter pure transshipping.
Malaysia
Moderate-High (6/10)
– Transcript highlights solar industry closures (e.g., Jinko Solar) due to U.S. tariffs (271% on solar imports) and transshipping accusations.
– Malaysia adds value in solar and semiconductors (exempt from some tariffs), reducing pure transshipping but supporting production shifts.
– Anti-dumping legislation and U.S. scrutiny lower likelihood for overt transshipping.
Indonesia
Moderate (5/10)
– Transcript details textile industry crisis (250,000 layoffs) and nickel sector boom from Chinese investment.
– Chinese goods flood domestic markets, but bans on Temu and proposed 200% duties on Chinese imports signal resistance to transshipping–
Until recently I was a long time worker at one of the Big Three delivery companies. Here in the US they handled only international shipments (to and from), and Chyna was their bread and butter. We had all the usual suspects; Temu, Shein, Amazon, etc.
I expect their volume is going to shrink, er, Bigly.
Looks like I got out at the right time.
If I read this thread I could think the US can only be fixed by taking down China.
Or that declaring kinetic and trade war is a big part of the solution of making america great.
If starting a war would fix the US, wouldnt it have already been fixed?
Every country has its issues, but to blame most of your issues on another country is something.
Isnt’t the best victory not living your best life, regardless of your perceived adversary? Not in spite of.
It seems to me the US can win and be better without “destroying” China.
If China is not meant to be it will destroy itself. (The ebb and flow of civilizations)
It doesnt need the US for that.
And being hateful and spiteful to China will take a lot of energy that could be better spent on rebuilding the US.
This trade war that’s now unleashed is a bit petty in that it seems like a customer (USA) blaming a department store (China) and their credit card company for making him go in and buy stuff there.
Then subsequently threatening to burn down the store.
“Sure, China killed millions of Americans via COVID and fentanyl, stole your trade secrets and IPs, sent spies into your government, and undercut your manufacturing, but really it’s your fault and you deserve it, so don’t be too hard on them.”
Take your delicate sensibilities and shove it where the sun don’t shine.
Quote from Vladimir Putin in 2019 during the tariff conflict between the US and China:
“When tigers fight, the Wise Monkey sits & observes.”
I see the problem from a different angle, I guess. Some people see this as something China did that was wrong or bad that they should be punished for doing.
It is just as much, if not more, the fault of Americans. Of Americans for wanting more and cheaper products. For wanting more profits for themselves, more return on investments.
It’s the fault of Americans for not investing in manufacturing here because of higher profits from investing in China. And small investors for wanting to buy into the most profitable stocks and funds. It’s the fault of labor unions that have increased the input cost of labor. It’s the fault of our educational system that is graduating students who don’t have basic skills in reading, math, and know-how. It’s the fault of climate activists who are opposed to cheap energy because they have been inculcated with the idea that we’re on the verge of a climate apocalypse. It’s the fault of our culture, our media, US “influencers” where people judge others on what they own, what they wear, or services they can buy. We have too many clothes, shoes, plastic containers that we often donate things with the tags still on them. We believe we deserve a new skirt, a new planter, a new lawnmower, a new bedcover. Such comfortable shoes, I’ll buy 2 more pairs.
It’s built into our culture so that we no longer make our own clothes, build anything, grow anything, repair anything. Some people don’t even cook their own family meals.
China provided. Cheaper prices. Higher returns on investments. That is what drives supply and demand.
We don’t have the manufacturing right now to make up for the loss to Americans of things they want.
If you like Heinz ketchup, buy it now because it will be going up to $100 for a small container. Heinz gets its tomatoes from China.
Stop lying.
“Every tomato in every bottle of Heinz Ketchup sold in the U.S. is grown in America by passionate people dedicated to growing high-quality, non-GMO tomatoes, many of who have farmed with us for generations.”
“Close to Home – To keep freshness and flavor in, Heinz tomato fields are within an average of four hours from harvest to unloading. This also keeps our carbon footprint low, and our quality high.”
https://www.heinz.com/sustainability
Sorry, Hunt’s ketchup. Thank you for the correction on that.
https://deeprootsathome.com/ketchup-scam-popular-us-brands-from-xinjiang-hidden-additives
No comment about any of the rest?
What reason is there to engage any further with a proven liar?
It’s okay Belle. We all make mistakes. I knew what you meant. 😘
ignore the insults and cruelty. It says more about them, than you.
Americans didn’t demand cheap garbage it was forced on us.
Stop blaming the victims
True. I remember the days when everyone was saying “don’t buy anything made in China.” However, it quickly got to the point that it was nearly impossible to find common, everyday items that weren’t made there. Then, after the take-down of American industries, most Americans couldn’t afford anything but cheap junk from China.
Two days ago, President Trump laid the blame where it belongs–his predecessors in the Oval Office.
When I was in my teens, everything was ‘Made in Japan’. It was hard to find stuff made in the USA. It was said that they had a town called Usa so people would be confused and purchase from there, thinking that they were buying American when they were still buying Japanese. I thought that it was really something, at the time, for that to be true. Now that I’m older (74) I realize that there is probably really nothing a government won’t do for money….
Agreed. I also agree there’s more than enough blame to go around.
One of the motivators I’ve listened to says, quite rightly:
“It’s not your fault if you’re messed up; it’s your fault if you STAY messed up.” (said with more colorful wording)
Abusers only successfully abuse the people who show up for, and stay around & take their abuses.
It is the abused one who ends the abuse – either by exiting the relationship or expiring,
which is just another form of exit. Less frequently the abused takes out the abuser.;
this can create more long-term problems for the abused that the two previous options.
It is incumbent on US to end/exit the abusers’ abuse… that We the People showed up for & took for many decades; granted it can be argued we were coerced into that relationship… yet we’ve stayed in & allowed it.
pHARMa is another abuser-for-profit We the People need to exit our dependent-relationship with.
Allowing comm!es to infiltrate, populate, & manipulate the gov’t. of our Constitutional Republic is another abusive relationship We The People need to end; since the McCarthy revelations in the 1930s we’ve needed to do that.
*Bigly*.
Comm!es in our gov’t. cozy in bed with CCP = birds of a feather flock together = agreements for mutual profiteering at the expense of both our citizenry AND our Consititutional Republic’s foundational integrity.
We are God Blessed in being given an opportunity to wake up to and exit these abusive relationships *alive*.
I think Trump said China had 2 trillion trade surplus.
China will use this to off set the tariff.
Their selling will continue but at what subsidized rate from the yeng yang government?
Its a win for consumers in US.
It will take longer for big business trade nut to crack.
Cha ching cha ching either way for the USA.
😂
It is kind of ironic that it was the US capitalists who built up the Chinese dragon to what it is now and watched it destroy the US will now start the process over somewhere else and still resist the America First concept of bringing the manufacturing back here.
Lost of empty brand new warehouses in my area. There may be a rush to fill them up with cheap china goods.
Thomas- you bring up an interesting point. Temu, Shein, Ali Express and other big retailers already have warehouses in the US filled with their stuff. So it seems they were expecting to get hit with the tariffs.
The way it works now is you order something online from China and somehow it gets sent to you from a NY address in Queens, probably a warehouse.
Much to my dismay, my wife got addicted to Temu stuff. I’ve been trying to wean her but getting nowhere. President Donald J Trump has saved my marriage!
Same here man, bales of temu garbage show up on the porch 2 or 3 times a week. Then she complains about not having any money.
Big hit to the cheap stuff on Amazon… just sayin..