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Trump Eliminates China, Hong Kong Trade Exemptions to Combat Illicit Substance Imports

April 4, 2025
in World
Reading Time: 2 mins read
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Trump Eliminates China, Hong Kong Trade Exemptions to Combat Illicit Substance Imports

President Donald Trump listens during a cabinet meeting in the White House, Monday, March 24, 2025, in Washington. (Pool via AP)

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President Donald Trump has once again taken a strong stance against unfair trade practices and illicit substance imports, this time by eliminating trade exemptions for China and Hong Kong. The move, part of a sweeping executive order instituting tariffs on multiple nations, directly targets deceptive shipping tactics used by the Chinese Communist Party (CCP) to exploit U.S. trade laws.

For years, China has taken advantage of a loophole known as “duty-free de minimis,” which allowed shipments valued at $800 or less to enter the United States without import duties or taxes. The Trump administration identified how the CCP and Hong Kong traders were deliberately splitting large shipments into smaller parcels to avoid scrutiny and, in many cases, to smuggle illicit substances like fentanyl into the country. By suspending this exemption, Trump is cracking down on the flow of dangerous drugs that have fueled America’s opioid crisis.

This decisive action comes as part of Trump’s larger tariff plan, dubbed “Liberation Day,” which aims to level the playing field in global trade. Breitbart economics reporter John Carney defended Trump’s move, pointing out the long-standing trade disadvantages faced by American businesses.

“Consider Europe’s VAT regime. A German automaker exporting a car to the U.S. does so tax-free — thanks to a VAT rebate. An American automaker shipping a car to Europe pays embedded U.S. taxes and a European VAT upon entry. One enjoys a de facto export subsidy. The other faces a tax wall,” Carney explained. “The WTO, in its infinite wisdom, allows this disparity and has repeatedly blocked American attempts to address it through legal or tax-code innovations.”

Trump’s crackdown on China’s abuse of trade exemptions is more than just an economic issue—it’s a matter of national security. China has been a major source of fentanyl and other deadly opioids, which have devastated American communities. By eliminating the de minimis loophole, the Trump administration is taking another crucial step to protect American lives while putting economic pressure on China.

With these new policies in place, China and Hong Kong will no longer be able to exploit America’s trade system to flood the country with illicit goods. Trump’s tough-on-trade stance continues to reshape global commerce, proving once again that his administration prioritizes American workers, businesses, and national security.

As this battle against unfair trade and illicit imports unfolds, one thing is clear: President Trump isn’t backing down from the fight to put America first.

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