U.S. Rep. Greg Murphy Representing the 3rd District of North Carolina | Official U.S. House headshot
U.S. Rep. Greg Murphy Representing the 3rd District of North Carolina | Official U.S. House headshot
Congressman Greg Murphy has introduced a new piece of legislation aimed at curbing tariff evasion by Chinese companies. The End China’s De Minimis Abuse Act seeks to prevent China from exploiting exemptions that allow goods valued under $800 to enter the United States duty-free.
"We must not allow China to systematically bypass tariffs at the expense of American businesses and workers," stated Congressman Murphy. He emphasized that nearly two-thirds of imports benefiting from this exemption originate from China. "By updating our De Minimis law, we are creating a fairer playing field for American businesses to compete and ending abuse by Chinese companies."
Murphy highlighted the ongoing efforts of former President Trump in addressing unfair trade practices by China. "President Trump continues to make significant progress in addressing China’s unfair trade practices; Congress must now act to codify necessary reforms in support of his agenda," he said. Murphy described the bill as a preliminary measure towards rectifying existing laws and expressed eagerness to collaborate with Trump on broader initiatives supporting American workers.
The backdrop for this legislative move dates back to 2018 when tariffs were imposed on over half of Chinese imports under Section 301 of the Trade Act of 1947. The current law permits goods valued below $800 to be imported without duties or taxes if sent between individuals on the same day, a loophole many Chinese firms have utilized.
The proposed legislation aims to terminate De Minimis exemptions for products subjected to trade enforcement tariffs, enhance transparency and data collection regarding these entries into supply chains, and introduce penalties for violations involving De Minimis entries.