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1. The e-commerce challenge: Is importing low-value consignments going to become more cumbersome in the EU and the US?

Author:
Anna Jerzewska
Publication Date:
04-2025
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
In the last few months, terms such as e-commerce and de minimis (threshold below which imported goods are not subject to tariffs) have made headlines both in the EU and in the US. The rapid growth of e-commerce exacerbated problems with this exemption both in the US and in the EU. The first problem is lack of control. Only a percentage of commercial goods are subject to physical border checks, and for e-commerce goods this number is even smaller. Then there is the issue of endangering the level-playing field. De minimis benefits consumers and businesses that rely on it, but harms domestic manufacturers and retail outlets that import in bulk (and thus are subject to full customs and product standards and safety requirements). But can the challenges around the rapid growth of e-commerce be solved by the removal of de minimis? And what would be the consequences of removing the exemption? The paper summarises recent attempts and proposals of removing de minimis in the EU and the US and the challenges faced by both administrations. In both cases, e-commerce is still under discussion and it’s not clear what the final solution will look like. However, there are already noticeable differences in approach.
Topic:
European Union, Trade, Imports, and E-Commerce
Political Geography:
Europe, North America, and United States of America

2. Openness as Strength: The Win-Win in EU-US Digital Services Trade

Author:
Matthias Bauer, Dyuti Pandya, and Oscar du Roy
Publication Date:
03-2024
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The discourse surrounding the EU’s supposed over-reliance on digital services imports from non-EU countries, particularly the US, has been a recurrent topic among some political circles. However, this viewpoint tends to oversimplify and misrepresent the nuanced and complex reality of the EU’s status within the global Information and Communication Technology (ICT) sector and digitally enabled trade. A thorough analysis of trade data and trends clearly illustrates that the EU’s engagement with foreign (non-EU) digital services, notably from the US, represents a strategic economic advantage, bolstering Europe’s competitiveness and fostering productivity growth. Below we underline the critical importance of openness to foreign innovation and technology diffusion for the EU’s economic future.
Topic:
European Union, Digital Economy, Strategic Competition, Imports, and Productivity
Political Geography:
Europe, North America, and United States of America

3. Investigating the Effect of the U.S. Semiconductor Export Controls on China

Author:
Hyok Jung Kim, Jonghyuk Oh, and Hyuk Hu Kwon
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
his report examines the significant impact of U.S. semiconductor export controls imposed under the Biden administration in October 2022. These controls, which target a broad range of semiconductor manufacturing facilities and AI chips, are part of a strategy aimed at curbing China’s advancement in critical technologies. A notable 32.5% decline in China’s imports of semiconductor manufacturing equipment has been observed, particularly in regions with advanced production capabilities and foreign company operations, such as those involving Samsung Electronics and SK hynix. While Korea experienced substantial drops in exports to China, the Netherlands saw an increase, reflecting its dominance in specific technologies like lithography. The AI chip sector has also been affected, with China turning to downgraded chips due to restricted access to high-performance models from companies like Nvidia. South Korea must adapt by strengthening its upstream semiconductor industry, considering reshoring production, and collaborating with international partners to mitigate risks. As U.S. export controls continue to evolve, the global semiconductor industry may face increased fragmentation, making strategic responses from affected nations essential to maintain competitiveness. Additionally, ongoing monitoring and adaptation to the dynamic regulatory environment shaped by these export controls are crucial.
Topic:
Economics, Science and Technology, Exports, Artificial Intelligence, Imports, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

4. Soaring demand is driving double-digit import price inflation in the United States

Author:
Caroline Freund
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
At a time of soaring price increases in the United States, inflation in the US import sector has been soaring the most. Import price inflation in the first half of 2022 was in the double digits, above US consumer price index and personal consumption expenditures inflation. Excess demand for certain imported goods is playing a big role, but so are supply shortages caused by temporary business closures overseas and shipping delays associated with the COVID-19 pandemic. Correctly identifying the culprit for misaligned demand and supply, and hence rising prices, is central to understanding the type and extent of policy intervention needed. Using movements in prices and quantities of specific goods, the analysis presented in this Policy Brief shows that the increase in import price inflation has been driven to the same or a greater extent by demand compared with supply constraints. The results have important implications for policies to help reduce the supply and demand imbalance and thus tame inflation.
Topic:
Economics, Inflation, COVID-19, Imports, and Supply and Demand
Political Geography:
North America and United States of America

5. How Washington Learned to Stop Worrying and Love the UAE

Author:
Albadr AbuBaker Alshateri
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
American Diplomacy
Institution:
American Diplomacy
Abstract:
When Dubai World Ports (DWP), a Dubai Government-owned entity, sought to purchase the British company Peninsular and Oriental Steam Navigation (P&O) in 2006, it faced huge opposition from the US Congress, local authority, and national security experts, despite the Bush Administration’s approval of the deal. The acquisition of P&O would have given the Dubai company the concession to run six major ports in the USA.
Topic:
Foreign Policy, Diplomacy, Exports, Trade, and Imports
Political Geography:
North America, United Arab Emirates, United States of America, and Gulf Nations

6. The 2018 US-China Trade Conflict after 40 Years of Special Protection

Author:
Chad P. Bown
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
In 2018, the United States suddenly increased tariffs on nearly 50 percent of its imports from China. China immediately retaliated with tariffs on more than 70 percent of imports from the United States. This paper assesses what happened in 2018 and attempts to explain why. It first constructs a new measure of special tariff protection to put the sheer scope and coverage of the 2018 actions into historical context. It then uses the lens provided by the 2018 special tariffs to explain the key sources of economic and policy friction between the two countries. This includes whether China’s state-owned enterprises and industrial subsidies, as well as China’s development strategy and system of forcibly acquiring foreign technology, were imposing increasingly large costs on trading partners. Finally, it also examines whether the US strategy to provoke a crisis—which may result in a severely weakened World Trade Organization—was deliberate and out of frustration with the institution itself.
Topic:
Economics, International Trade and Finance, World Trade Organization, Bilateral Relations, Trade Wars, Donald Trump, and Imports
Political Geography:
China, Asia, North America, and United States of America

7. China will further open up but not due to US pressure

Author:
Dong Yan
Publication Date:
04-2018
Content Type:
Policy Brief
Abstract:
China will take measures to further open up to the outside world, Xi said in his highly-anticipated keynote address at the Boao Forum for Asia. But amid the escalating China-US trade conflict, some people have wrongly assumed Xi made the remarks with the Trump administration's accusations in mind. But a review of China's policies shows the country will deepen reform and opening-up because of its practical development needs, not because of any other country's demand or coercion. As for the expansion of imports, China shifted its focus from exports to striking the right balance between imports and exports long ago, because the increase in imports will offer more choices to Chinese consumers and help improve their living standards, aside from giving foreign companies easier access to the Chinese market.
Topic:
Markets, Trade Wars, and Imports
Political Geography:
China, Asia, North America, and United States of America

8. Identifying Foreign Suppliers in U.S. Import Data

Author:
Fariha Kamal and Ryan Monarch
Publication Date:
08-2015
Content Type:
Commentary and Analysis
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Relationships between firms and their foreign suppliers are the foundation of international trade, but data limitations and reliability concerns make studying such relationships challenging. We evaluate and enhance supplier information in U.S. import data and present new facts about importer-exporter relationships. Count of foreign exporters from U.S. import data tends to exceed those from source country data, especially from China. The pattern of U.S. imports from origin countries changes substantially by tracing trade back to the supplier's location instead. Related-party relationships trade more, while larger countries have more relationships.
Topic:
International Cooperation, Foreign Direct Investment, Business, Trade, Data, and Imports
Political Geography:
North America and United States of America

9. Treaty Compliance: Lessons from the Softwood Lumber Case

Author:
Jeff Colgan
Publication Date:
05-2006
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
The Canada-U.S. dispute over softwood lumber imports provides an important case in understanding issues of international bargaining and treaty compliance. Recent events in the dispute suggest that one of the leading theoretical accounts of treaty compliance does not offer an adequate explanation of state behavior. Policy makers should recognize the importance of cross-border ownership and industry interdependence for the implementation of, and compliance with, international trade agreements. The softwood lumber dispute adds credence to the perspective, often advocated by realists, that treaty compliance will only occur when it is in a nation’s material interests to do so.
Topic:
Treaties and Agreements, Trade, Imports, and Disputes
Political Geography:
Canada, North America, and United States of America