tariffs

The tariffs and doctrine “of Minimis”

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On February 1, President Donald Trump issued a new Executive order in which he imposed 10% tariffs on all types of Chinese merchandise. That has ended up having an immediate impact on the business of Temu and Shein, two of the great Chinese electronic commerce platforms, and in the last hours a singular situation has been experienced. Duty. The activation of the 10% rate on Chinese goods that arrive in the United States is one of the measures that Trump has created for increase taxes to the countries with which it is most traded. In fact, he raised 25% tariffs for Canada and Mexicoalthough it has postponed its application for 30 days. No Chinese packages. The impact can be huge, and the first side effects have already been noticed. A few hours ago the US postal service stopped accepting packages from China and Hong Kong, which among other things caused all chaos between the Truck carriers They tried to carry their packages as they had done until then. Private courier companies such as UPS or Fedex did not announce restrictions at that time, indicate In The Verge. Restored service. As they point out In CNBCthe postal service ended up accepting those packages. In a statement On their website they indicated that both they and the customs service were “collaborating closely to implement an effective mechanism for collection of new tariffs to China, in order to guarantee the least possible interruption of the delivery of packages.” The exception “of Minimis”. China’s trade with the United States has benefited for years of an exception called “Minimis”, a Latin term that indicated that packages with value below $ 800 could enter the United States without paying taxes. It is a mechanism that platforms such as Shein or Temu have taken the opportunity to offer really competitive prices in their merchandise. They are not the only ones who have taken advantage of that “shortcut”, and also US companies such as Amazon, Etsy or Ebay have benefited from this exception. Trump puts an end to minimis. But this exception, which carries about a century Active, was blocked by the new president of the United States. The impact of this measure can be enormous: the American customs agency Indian Recently that it processed more than 1.3 billion minimis shipments in 2024. Not only that: A report The US government revealed that Temu and Shein are “probably responsible” for more than 30 % of all minimis shipments that arrive in the US, and practically half of all shipments of this type that do not pay taxes came from China. The rise of electronic commerce and the avalanche of arrival of low value products made the limit of minimis products in 2016 rose from 200 to $ 800 With the Obama government. To check all packages. The deactivation of the Minimis doctrine will cause the workload for messaging companies and postal service to increase colossally. In theory they must check all packages to verify that new regulations do not breach, something that could significantly delay (at least, initially) shipping times. Can Temu and Shein continue competing? Both platforms benefited from Minimis and the absence of current tariffs to be able to sell their products at prices with which it was very difficult to compete. Amazon began a plan to do that precisely with the launch of Amazon Haul: All at less than $ 20although shipments are completed in a weeks. Trump’s measures could make Amazon change their plans with that service. Most likely: that everything costs more. All these tariffs and taxes probably end up being paid by American consumers, for whom all products will probably be more expensive. As they explained In The Vergetariff rates “are a tax on the person or entity that imports goods, not to their exporter. A study of the National Bureau of Economic Research of October 2024 made it clear that American citizens with more tight economies will be the most affected. Spain and the VAT package. The situation that is now lived with Minimis’s doctrine remembers what happened in Spain in 2021. It was then that the call was activated “Electronic Commerce VAT Package“That made VAT apply to shipments with a value not exceeding 150 euros. Chinese platforms such as Aliexpress, which took advantage The shortcuts of the lawthey were especially affected. A year later The firm itself made it clear that the mark in its income had been evident. The shopping experience for consumers also changed: They could not trust at all (at least, initially) of the price that appeared on the products of its website, which Normally it was more expensive. A complicated future for Temu and Shein (and for their clients). The measures taken by the Trump administration will undoubtedly have a direct impact on the future of Temu, Shein and other Chinese electronic commerce platforms when operating in the United States. Price increases and perhaps delays in shipping times are expected. Bad news for China … and for US consumers who benefited from those Chinese products at competitive prices. And a jug of cold water for finish or google. But that will also have negative effects for the US economy. It is estimated that last year Temu invested about 3,000 million dollars In online marketing, and Shein has been flooding Instagram for years by advertising their garments at balance prices. Meta indicated last year that 10% of their advertising income came from Chinese companies, and now all that money – which of course invested in other US platforms – could fate. Image | Daniel Torok In Xataka | Elon Musk has managed to convince the government that the priority is to conquer Mars. The question is what happens to the moon

It will impose tariffs from 25 to 100% to the chips manufactured in Taiwan

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Donald Trump is fulfilling his word. During the electoral campaign he promised that he would make the decisions that were necessary to reinforce the business of US companies within the US. And he also assured that he would sanction tariffs all those countries that threaten the interests of the nation that leads since January 20. As soon as he has been in the government for a week, and he is doing both. “In the very close future we will impose tariffs on foreign production of computer chips, semiconductors and pharmaceutical products to return the manufacture of these essential goods to the US (…) went to Taiwan; now we want them to return. We do not want to give them Millions of dollars in the ridiculous Biden program. 100%”, Donald Trump declared yesterday during a conference that was held in Florida (USA). This measure of the Donald Trump’s government has not taken TSMC offset The express mention to Taiwan that the US president has made a few hours ago is a very clear allusion to TSMC. On this Asian island there are other semiconductor manufacturers, such as UMC, but its relevance in the chip market is much lower than that of the company currently leading CC Wei. TSMC dominates the integrated circuit market with A quota of approximately 60%so your leadership in the chip manufacturing industry is indisputable. TSMC has been leaching its strategy for more than four years to extend its semiconductor manufacturing infrastructure beyond Taiwan’s borders Anyway, the passing step that the US administration is going to give will not take TSMC by surprise. This company has been outlining its strategy for more than four years to extend your manufacturing infrastructure of semiconductors beyond the borders of Taiwan. And he is doing it for two reasons. On the one hand it is an effective way to protect your business if at any time it is triggered A war conflict between China and Taiwanand their plants on the island were useless. But, in addition, TSMC is significantly developing its infrastructure in the US. His plan is that their new Arizona factories not only serve to protect their business from a possible conflict between China and Taiwan; They also protect it from the foreseeable US tariffs. The first of these plants is already producing integrated circuits in the N4 lithographic node, which belongs to the Finfet family of 5 Nm. In fact, he is about to deliver Apple’s first chips games. The second Arizona factory will be operational in 2028 and will produce circuits integrated in N3 (3 Nm) and N2 (2 Nm) nodes. And finally, the third factory will not be listed at all until the end of this decade and will produce chips in the N2 (2 nm) node. So far the most advanced TSMC integration technologies were only available In its Taiwan plantsbut, as we have just seen, Soon they will also be in the US. And in this way it will solve two problems of a stroke: it will be fought from the tariffs that the Trump government will approve and will reinforce its production infrastructure beyond its country of origin. One last note: in addition to the US, TSMC is building New plants in Japan and Europe. Image | TSMC More information | C-Span In Xataka | Intel’s plan in front of an unattainable TSMC: beat Samsung and consolidate as the second largest chips manufacturer

He has also sued the European Commission for tariffs, according to Politico

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Elon Musk star in a confrontation with the European Commission (CE). On this occasion, the conflict does not revolve around alleged breach of the Digital Services Law (DSA) with Xbut the focus is on tariffs affecting the electric car. Political points out that Tesla has filed a lawsuit against the executive arm of the community block before the Court of Justice of the European Union (TJUE). The automotive company adds, in this way, to the legal actions initiated by the Chinese giants Byd, Saic and Geely against the commission. The American renowned explains that the demands aim to leave without effect Compensation rights, that entered into force in October last year. If the ruling is favorable for the plaintiffs, they could initiate a loss claim. Tesla’s case against the EU It should be noted that Tesla has not made comments about it. The information comes from two sources from the demanding sector, which have preferred to remain anonymous. Politic adds that the commission has approximately two months to prepare your strategy of defense against the multiple cases presented in Luxembourg in recent months. Although there have been no reactions on the demand for Tesla, the Commission has issued public comments regarding the demand of Chinese manufacturers. Olof Gill, spokesman for Economic Security, Commerce and Financial Services, said they were prepared to respond to attempts to challenge the courts, making it clear that they have no intention of yielding to the pressures. As we have indicated above, the good course of the case could allow the plaintiffs to request compensation for the money paid in compensatory rights. Now, Tesla has been The least affected manufacturer. The American company has production plants in different parts of the world, although Model 3 that are marketed in the European market come from the Shanghai gigafactoría. MG4 Electric Tesla, who actively collaborated in the anti -subvent research of the community block, received a 7.8%”tariff”, the lowest among all manufacturers. Byd’s was 17%, Geely’s of 18.8%and SAIC’s reached 35.3%. In all cases, these compensatory rights are added to the 10% rate that the EU already applies to the importation of vehicles, a lien that has been in force. Unlike Tesla, which has the Berlin gigafactoría To manufacture the Model and And batteries, Byd still has no factories in Europe, although it is already planned to open one in Hungary. For its part, Saic, that Markets MG cars like him MG4 ElectricNor produces vehicles inside the EU. Instead, Geely, who acquired Volvo in 2010, does have production lines in Sweden and Belgium. Manufacturers that produce electric vehicles inside the EU can dodge tariffs. However, as we have pointed out, none of the Chinese companies affected by this anti -subvention measure manufactures vehicles in European territory. Now it’s time to wait to see what effect the demands will have. They may not achieve an absolute victory, but they could negotiate better tariff conditions. Images | Alexey Larionov | Tesla In Xataka | The Renault 5 has entered as a sales missile in France but something very simple has stopped it: a bug that prevents moving the car

The products that will suffer an increase in price with the 25% tariffs on Mexico and Canada

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This Monday, during a signing ceremony in the Oval Office, President Donald Trump ratified the decision to impose a widespread 25% tariff on imports from its trading neighbors Mexico and Canada. Although the president stated that this would be established from day one of his mandate, The new rates will come into effect from February 1although Trump seeks to increase national production, this measure could weigh on the pockets of Americans. According to federal data, Last year more than 30% of imports came from these trading partnersTherefore, some sectors will be affected and Americans will have to foot part of the tariff bills as the possibility of an increase in goods is imminent. Of the products and services that will suffer an increase in price with the 25% tariffs on Mexico and Canada are: Food and alcoholic beverages Data from the United States Department of Agriculture indicates that during 2024 $46,000 million dollars in agricultural products will be imported from Mexico. It is expected that with the new tariffs the costs of Constellation Brands, which imports beers from the Modelo and Corona brands could increase by 16%. Automobiles and auto parts The automotive sector could also be affected, data from the Department of Commerce highlights that in 2024 alone, The import of vehicles and spare parts from Mexico reached a value of $87,000 and $64,000 million dollars respectivelyWith the increase in taxes, this sector will increase its prices in the coming months. Gas In the case of Canada, with the imposition of the new tariff rates, the cost of gas could increase. According to data from the United States Energy Information Administration, last year The country imported approximately $97 billion of oil and gas from Canada. Keep reading:

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