Hey there! Did you know that the United States and the Chinese mainland trade lots of goods every day? But recently, they can’t seem to agree on how much they’re trading! Let’s find out why.
What Are Tariffs?
First, let’s talk about tariffs. A tariff is like a tax that a country puts on goods it brings in from another country. In 2018, the US started putting tariffs on many products from the Chinese mainland. The idea was to make these goods more expensive, so people in the US would buy fewer of them.
Did the Tariffs Work?
According to US data, the tariffs seemed to work! They say they’ve been buying less from the Chinese mainland and more from other countries. This means the amount of money (called a trade deficit) the US owes the Chinese mainland got smaller.
But Wait, There’s a Twist!
However, the Chinese mainland’s data tells a different story. They say they’ve been sending even more goods to the US since 2018—almost 10% more!
The Mystery of the Missing Imports
So, why do the numbers not match? The answer might be in tiny packages! 📦
What’s the De Minimis Exemption?
In the US, there’s a rule called the “de minimis exemption.” It means that small packages under $800 can enter the country without paying tariffs or being counted in the trade statistics. A lot of people in the US buy small items from online stores in the Chinese mainland. These little parcels add up!
Small Packages, Big Impact
Because these tiny packages aren’t counted in US trade data, they might be missing a big part of what’s actually being traded. This could explain why the Chinese mainland’s numbers are higher—they’re counting everything they send, including those little packages!
Conclusion
Isn’t it amazing how tiny packages can make such a big difference? Next time you order something small online, remember that you might be part of the mystery in US-China trade numbers!
Reference(s):
China and US at odds over tariff effects amid undercounted imports
cgtn.com
