US Lifts Tax-Free Policy for Imported Goods Below $800, Which May Trigger Shortages and Price Hikes of Commodities

The Trump administration has officially abolished the "de minimis" exemption policy for international goods valued at less than $800.

In an interview with CNN on Friday night, Gene Seroka, Executive Director of the Port of Los Angeles, warned that this policy change would lead to higher prices and commodity shortages.

Seroka pointed out that previously, imported goods valued under $800 could enter the United States tax-free. Although it might take longer for these goods to arrive, it was worth the wait as people now have to pay 2.5 times the original price.

Sedona further stated that large retailers' inventory can only last for 4-6 weeks. If a new trade agreement is not reached, consumers will be in trouble. Afterward, supply and demand will dominate the market: a shortage of supply means rising prices.

Original Source: https://www.toutiao.com/article/1831054863570953/

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