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.

Yesterday 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 has been cancelled for all products coming out of China. The rule change only targets China and Chinese shippers. No one else.

[See Executive Order Here]

The minimum duty is $25, and the tariff rate is 30% for all products mailed from China into the USA that previously qualified under the de minimis rule.

Beyond tariffs or sector specific countervailing duties, the removal of China to use the $800 de minimis exemption will destroy their economy.  There is no way for manufacturers in China, marketed into the USA, to be able to survive if they are forced to collect and organize the requirements for U.S. custom and import duties. They will simply dissolve.

FACT SHEET – […] “Following the Secretary of Commerce’s notification that adequate systems are in place to collect tariff revenue, President Trump is ending duty-free de minimis treatment for covered goods from the People’s Republic of China (PRC) and Hong Kong starting May 2, 2025 at 12:01 a.m. EDT.

Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures.

(more…)

Here are the basic resources you need to dive into President Trump’s global trade and tariff reset.  Topline opinion at the end of the document summaries.

♦ United States Trade Representative: 397-page detailed analysis of global trade relationships with the United States. The 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE) is the 40th report in an annual series that highlights significant foreign barriers to U.S. exports, U.S. foreign direct investment, and U.S. electronic commerce. This document is a companion piece to the President’s 2025 Trade Policy Agenda and 2024 Annual Report, published by the Office of the United States Trade Representative (USTR) on February 28, 2025. SEE REPORT HERE

♦ President Trump Executive Order: Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits. READ EXECUTIVE ORDER HERE:

♦ ANNEX #1 – Outlining the tariff rate per country as assigned.  SEE HERE

[SOURCE]

♦ ANNEX #2: 37-pages outlining the products that are exempted from the globally specified tariffs. The tariffs generally target completed goods, finished durable goods, not necessarily the chemical components or compounds needed if we are to manufacture or build the product in the USA.  Therefore Annex 2 provides the list of all products, chemicals, components and compounds that are exempt from the tariff program.  [SEE EXEMPTIONS HERE]

(more…)

President Trump delivers a speech at the White House outlining a global trade reset established on the principle of trade and tariff reciprocity.  [Primary Executive Order Here]  – [Executive Order Here]

“The post-war international economic system was based upon three incorrect assumptions: first, that if the United States led the world in liberalizing tariff and non-tariff barriers the rest of the world would follow; second, that such liberalization would ultimately result in more economic convergence and increased domestic consumption among U.S. trading partners converging towards the share in the United States; and third, that as a result, the United States would not accrue large and persistent goods trade deficits.”

“Put simply, while World Trade Organization (WTO) Members agreed to bind their tariff rates on a most-favored-nation (MFN) basis and thereby provide their best tariff rates to all WTO Members, they did not agree to bind their tariff rates at similarly low levels or to apply tariff rates on a reciprocal basis.  Consequently, according to the WTO, the United States has among the lowest simple average MFN tariff rates in the world at 3.3 percent, while many of our key trading partners like Brazil (11.2 percent), China (7.5 percent), the European Union (EU) (5 percent), India (17 percent), and Vietnam (9.4 percent) have simple average MFN tariff rates that are significantly higher.”

.

Country-specific ad valorem rates of duty as specified in Annex I to the main Executive Order.

The tariffs generally target completed goods, not the imported chemical or component materials needed to by industry to manufacture the products domestically.  Annex II are the exemptions to the Executive Order.

I have been going through the details and will have much more soon.

(more…)

Wall Street, the Bankers, the Hedge Funds, the multinational corporations, K-Street Lobbying firms, Democrats, Republicans, leftists, globalists, and every other segment of the financial media who define themselves through the prism of their bank accounts, need someone else to blame for the Trump tariffs; because Trump doesn’t care.

It looks like the professional political class have decided to focus all financial firepower against Commerce Secretary Howard Lutnick.

With the anticipated reciprocal tariffs announcement tomorrow, Liberty Day as President Trump calls it, the high-finance multinationals and Wall Street crowd are going bananas. Here come the hits against Lutnick.

(Politico) -‘I don’t know anyone that isn’t pissed off at him’: Trump world turns on Lutnick. As ‘Liberation Day’ nears, patience for the Commerce secretary is wearing thin across the Trump administration. (read more)

(New York Post) – Frustration grows with Commerce Secretary Howard Lutnick ahead of Trump tariff announcement: ‘Loose cannon with half-baked ideas’ (read more)

(more…)

President Donald Trump holds an impromptu presser aboard Air Force One en route back to Washington DC.  Most of the conversation centers around the upcoming “Liberty Day” tariffs, and the Ukraine-Russia conflict.

According to National Economic Council Chairman Kevin Hassett, our President now has all the assembled data from the full review and analysis of the combined research of the MAGAnomic agencies within the White House.  The analysis combines both tariff and non-tariff trade barriers to determine exactly what costs are put upon the U.S. export companies for goods that arrive in various countries.

All of those combined costs, by country, will determine the reciprocal amount of the tariff levied by President Trump.  The announcement of tariff rates will likely come this week, with President Trump previously saying April 2nd and April 3rd being the beginning of the implementation dates.

President Trump also puts context on the headline quotes promoted by NBC news and Kirsten Welker about his consideration toward Vladimir Putin. A COMPLETELY DIFFERENT CONTEXT!  President Trump simply noted that while President Putin doesn’t like Zelenskyy, and factually calls him illegitimate, Trump needs Putin to accept Zelenskyy in order to have the other chair at the peace table filled. That’s it. Pragmatic toward peace! WATCH:

.

President Trump notes that after his warning of secondary tariffs against any nation who imports oil from Venezuela, Chinese ships pulled up anchor and left Venezuelan ports empty.  Additionally, regarding Zelenskyy, President Trump notes the Ukraine President is going to face “a lot of trouble” if he backs out of the previously agreed minerals deal.

(more…)

Appearing on Fox New with Maria Bartiromo, National Economic Council Director Kevin Hassett walks through the intent of the upcoming April 2nd ‘liberation day’ tariffs.

Hassett notes the auto tariffs are likely to generationally change the dynamic of car manufacturing in the USA.  Additionally, the stock market disruption is entirely predictable against the dynamic of Wall Street -vs- Main Street. WATCH:

Today, exclusively on @SundayFutures with @MariaBartiromo, National Economic Council Director Kevin Hassett #KevinHassett spoke about President Trump preparing to announce reciprocal tariffs this Wednesday.@FoxNews pic.twitter.com/1lU8w9w0FB

— SundayMorningFutures (@SundayFutures) March 30, 2025

.

(more…)

Elon Musk and the primary members of the DOGE team gave a behind the scenes review of their mission to Fox News correspondent Bret Baier.  Elon Musk outlines how the Dept of Government Efficiency is on track to remove $1 trillion in excessive waste, fraud and abuse from the federal budget.

The team discusses just how excessive the fraud is within the federal spending programs as they outline finding after finding of federal spending that is often outrageous and stunning.  This is MUST WATCH television.

.

Review the discoveries at DOGE.GOV HERE

(more…)

President Donald Trump talks about placing tariffs on Canadian goods.  Ontario Premier Doug Ford talks about “inflicting as much pain as possible on the American people.”  See the difference?   Tell me again how the term “snowmexicans” is insulting.  I digress.

A few thoughts.  First, apparently Doug Ford doesn’t quite understand that tariffs on steel, aluminum and auto imports are not part of the “reciprocity” tariff regime.  They are an entirely different category classified under national security directives to ensure American industrial capacity.

Second, as Canada moves into the “freedom fries” phase, voices like Doug Ford might want to consider the end of this continuum that finds the word “embargo” in the lingo. Perhaps President Trump would consider elevating the conversation to “reciprocity” in the banking sector.  Again, I digress.

Ontario Premier Doug Ford announces the Canadian government intention to “inflict as much pain as possible against the American people.”  WATCH:

Canadians just don’t get it.  Meanwhile, as it was within most of the originating negotiations of the USMCA, Mexico smartly stays quiet as stompy feet Canada draws the attention from President Donald Trump.

(more…)

Wealthy nations will attempt to maintain exports against President Trump tariffs by subsidizing their industries. Corporations have deeper pockets, and the politicians are used to the bribes, we call it “lobbying.” Therefore, the government responds by subsidizing the corporations [ie. the WEF business model].

Canada will subsidize their export industries, Germany will subsidize their auto industry, the EU will provide subsidies to their manufacturing powerhouses, and China will once again start subsidizing their manufacturing industry. Each of these nations will in turn devalue their currency.

However, poorer nations will be faster to lower import tariffs on USA goods because they have lower lobbying (bribe) income from corporations to govt. That’s what we should expect to see.

VIETNAM – Vietnam said it plans to cut import duties on a range of goods including cars, liquified natural gas and agricultural products.

[…] The announcement on the finance ministry’s website late Tuesday came less than two weeks after Prime Minister Pham Minh Chinh said the country was reviewing duties in order to encourage increased imports from the United States.

Vietnam represents the United States’s third-highest trade deficit, behind China and Mexico.

According to the finance ministry statement, import duties on some cars will be cut by half and the tax rate for liquified natural gas will drop from five percent to just two percent. Duties will also be cut for a number of other products including frozen chicken thighs, almonds, sweet cherries, raisins and wood. (more)

During President Trump’s first term, many companies proactively moved manufacturing operations from China to other nations in Southeast Asia.  Vietnam was a big benefactor of the manufacturing shift.  It is smart for them to respond to the reciprocal tariffs coming April 2nd by lowering their tariff rate.

(more…)

Commerce Secretary Howard Lutnick appears for an extensive discussion with the All In podcast.  Secretary Lutnick has been a 30-year friend of President Trump and is currently one of the most critical members of the MAGAnomic team who are executing Trump’s agenda to Make America Great Again.

Secretary Lutnick outlines the background of what makes President Trump so effective in his position, and within the discussion Lutnick notes at the core of Donald Trump is “the most intuitive person he has ever known.”  This is a casual discussion about President Trump and how Lutnick came into the administration.  WATCH:

CHAPTERS:

(0:00) Chamath and Friedberg welcome Commerce Secretary Howard Lutnick!
(1:10) Howard describes his 30+ year relationship with President Trump and his road from business to politics
(14:44) Running Trump’s transition team, DOGE origin story, what it’s like working for Trump
(38:01) Balancing the budget and fixing GDP
(52:21) Tariff history and strategy, global trade
(1:10:34) Trump Cards, building better government software, AI thoughts
(1:22:49) Sovereign Wealth Fund strategy
(1:37:16) How his family reacted to his new role

(more…)