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PaperclipPerfector  2d ago (text post)   1483 thread views

Small-Scale Question Sunday for February 2, 2025

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

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Not entirely sure yet, given my naturally pessimistic and "wait-and-see" attitude, but probably more positively-inclined toward them than most here, despite my "super precarious place financially."

As some alternative viewpoints most here probably aren't exposed to, I'll first link this from Conservative Treehouse, "The Secret Tariff Code is Buried in ‘Section 2, Item (h)’ of the Executive Order":

So, Canada and Mexico get 25% tariffs, but China only 10%. Why? The secret is in that subsection “(h)” when it talks about de minimis treatment. Essentially, what President Trump is doing is levying a much more massive import tax, and possible confiscation impact on the core source of fentanyl (and other illegal) substances.

Approximately a billion packages are estimated to enter the USA under the cover of the de minimis exemption. This is where the enforcement mechanism of the “External Revenue Service” combines with the tariff approach and the “state of emergency.” President Trump imposed the tariffs under the International Emergency Economic Powers Act, a nearly 50-year law that gives the president sweeping power to impose sanctions after declaring an emergency.

Now the billion packages, mostly from China, Mexico and Canada are going to be subjected to review and interception.

The de minimis loophole comes from back in the 1930s. The idea back then was, say you went on a vacation to Paris, you shouldn’t have to file customs paperwork or pay taxes if you decided to ship some little Eiffel Tower statues to your friends back home.

Congress in 2015 then raised the de minimis threshold from $200 to $800. However, the e-commerce world exploded, and Chinese companies began using the de minimis loophole to ship cheap goods (ex. Temu and Shein) into the USA direct to consumers without paying any customs duty.

It was reported last year that the U.S. was on track to receive a billion packages through the de minimis loophole that aren’t taxed and don’t have customs slips saying what they are. Making matters worse, illegal items are slipping through the cracks, including, knockoffs, unsafe items and even chemicals used to make fentanyl. The worst abuser that exploits this de minimis loophole is, by far, China.

President Trump can require a customs and duty declaration stating what is in every package and subsequently collect tariffs and duties.

Put it all together and President Trump is executing an Emergency Act executive order, plus the imposition of a tariff review, and simultaneous interception of de minimis packages previously unchecked as the enforcement mechanism. All executed by the External Revenue Service.

(Emphasis in original)

And for something a bit more out there (even for me), there's Vox Day's "Testing the Free Trade Hypothesis"

It has long been a mantra of the free trade crowd that both sides lose from a trade war. President Trump has called that mantra into question by launching a trade war with Canada, and likely Mexico and China as well:

…

Conclusion: the USA will handily win a trade war with all three countries, which is presumably why President Trump singled them out. The US economy will observably benefit from removing foreign competitors taking sales away from domestic businesses; the GDP cost to the foreign countries is an order of magnitude greater to them because their interaction with the USA is more parasitical than symbiotic.

…

Remember, the theoretical justifications for free trade have always been false and incorrect, as first demonstrated by Ian Fletcher and then conclusively disproved by me. Free trade is absolutely and inherently detrimental to a nation, because its logic of efficiency and optimally pairing labor with capital absolutely requires the complete destruction of families, local communities, and the demographics of the nation itself.

The fact that decades of even partially free trade within and without the US borders has significantly fostered these three negative societal trends isn’t an accident, it is specifically predicted by my theoretical observations and argument in my 2016 book ON THE QUESTION OF FREE TRADE.

Here is the relevant Presidential order. It’s informative to see that instead of cracking down on its illegal fentanyl production and exports, the Canadian government has elected to embrace trade war. The irony here is that the USA is simply attempting to do what China tried, and failed, to do in the Opium Wars.

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