FASH455 Video Discussion: This ‘Loophole’ Lets $54B of Products Into the U.S. Tariff-Free (WSJ)

Discussion questions:

1. What makes the de minimis rule controversial?
2. Who might be the winners and losers of the suspension of the de minimis provision for U.S. imports from China? Why?
3. Imagine you are part of the sourcing department of a U.S.-based fashion company that currently sources from China. How would you respond to the situation in the video, and what recommendations would you make regarding your company’s sourcing strategies?
4. Do you have any other thoughts or reflections on the video?

Additional reading:

• Shein, Temu, Amazon Haul set for price hikes as US shuts trade loophole (Reuters)
• China’s E-Commerce Exports and U.S. De Minimis Policies (Congressional Research Service)
• Event Recording: Regulating and Reforming De Minimis (October 2024)