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Report: US to not lower tax-free import level in USMCA deal

The U.S. will remove a provision from the United States-Mexico-Canada Agreement that would have allowed it to reduce the tax-free import ceiling currently at $800, Reuters reported, citing sources familiar with the matter.

This would reportedly ease concerns that a cut in the threshold, below which imports are exempt from sales tax and duties, could increase small companies' costs and reduce their competitiveness.

However, some companies believe that the existing limit is too high, giving Chinese sellers an edge from a price perspective when transacting via online shopping websites.

House Democrats said Dec. 10 that they had reached an agreement with the Trump administration to advance a revised version of the trade pact, as part of which both Canada and Mexico lifted their tax-free ceilings to levels still below that of the U.S.