02/06/2025

Why a Trade Loophole Strains Low-income and Minority Americans

Low-income Americans more exposed to price hikes

Prices will rise for Americans who buy $5 shirts, $10 lamps and $20 shoes on direct-from-China shopping sites like Shein and Temu after President Donald Trump suddenly shut a trade loophole that had been used to ship low-value packages duty-free from China.

But the cancellation this week of the so-called de minimis loophole will strain American consumers unevenly, according to economists who analyzed data on millions of shipments to the U.S. from three global carriers.

Poor shoppers will be hurt disproportionately, they found, as people living in lower-income and minority U.S. zip codes spend relatively more on such shipments than those living in higher-income areas.

Please select this link to read the complete article from Reuters.