Thursday, February 26, 2026

How did some Chinese importers escape paying the tariffs?


Chinese importers and exporters have utilized several techniques to circumvent high U.S. tariffs, primarily involving the disguise of a product's origin or its value.
  • Transshipment and Origin-Washing: This is the most common method, where goods are routed through a third country—such as , or —before being exported to the U.S..
    • "Made in [Country]" Relabeling: Goods are repackaged or relabeled in these intermediate countries to appear as though they did not originate in China.
    • Minimal Processing: Some firms perform token assembly or minor changes (e.g., adding a simple component) to claim "substantial transformation," which legally changes the country of origin under certain trade rules.
  • De Minimis Loophole: Until recently, importers bypassed tariffs by shipping small, low-value parcels directly to consumers. Under the de minimis rule, shipments valued under $800 were exempt from duties. However, this exemption was largely eliminated for Chinese goods in May 2025.
  • Customs Fraud and Undervaluation: Importers may artificially lower the declared value of goods on customs documents to reduce the total tariff paid, as tariffs are often a percentage of the product's value.
  • Tariff Engineering and Misclassification: This involves misidentifying products under incorrect Harmonized Tariff Schedule (HTS) codes that carry lower duty rates or modifying products slightly so they fall into a different, cheaper tax category.
  • Phantom Importers (DDP Schemes): Some exporters use Delivered Duty Paid (DDP) arrangements and shell companies to act as the "importer of record". If authorities discover the fraud, they often find only a defunct shell firm with no reachable assets or personnel.

How serious is the plumbing problem -- USS Gerald. R. Ford?

 

Response A
The plumbing problems on the 
USS Gerald R. Ford, currently docked in Souda Bay, Crete, are serious enough to impact crew morale and require urgent port-side maintenance, although the Navy maintains the ship remains fully mission-capable.
As of late February 2026, the carrier is undergoing an urgent "acid flush"—a procedure costing roughly $400,000 that can only be performed while stationary—to clear widespread clogs in its high-tech sewage system.
Severity of the Crisis
The situation is characterized by frequent system failures that have directly affected the daily lives of the 4,600+ crew members:
  • Widespread Failures: Internal reports recently logged 205 breakdowns over just four days, with some reports claiming up to 80% of toilets were out of service at peak times.
  • Excessive Wait Times: Sailors have reportedly faced queues of up to 45 minutes just to use a functioning restroom.
  • Maintenance Strain: Engineering teams have worked 19-hour shifts to address leaks and overflows caused by the failing vacuum-based system.
  • Deployment Strain: The issues have been exacerbated by the ship’s extended deployment—now in its 11th month—beyond the standard six-month rotation.
Root Causes
The problems stem from both design flaws and the demands of a warship environment:
A permanent fix is reportedly years away and will require an expensive redesign of the ship's internal plumbing.

Wednesday, February 25, 2026

How did the Trump administration cut food stamps?

 

In 2025, the Trump administration enacted the One Big Beautiful Bill Act (OBBBA), which includes approximately $187 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP) over the next decade. These cuts are primarily achieved through stricter work requirements, shifting costs to states, and changes to benefit calculations.
Primary Methods of Cutting SNAP
The administration implemented several structural and regulatory changes to reduce program spending:
  • Expanded Work Requirements: The law raised the age for work-reporting requirements from 54 to 64 for adults without dependents. It also eliminated exemptions for several vulnerable groups, including veterans, homeless individuals, and former foster youth.
  • Cost-Shifting to States: Starting in fiscal year 2027, the federal government will reduce its share of SNAP administrative costs from 50% to 25%. Additionally, beginning in 2028, states with high payment error rates will be required to pay for 5% to 15% of the actual food benefits, which were previously 100% federally funded.
  • Thrifty Food Plan (TFP) Freeze: The law permanently freezes the cost of the TFP—the basis for SNAP benefit levels—allowing it to increase only for inflation and blocking future re-evaluations that might account for the rising cost of a healthy diet.
  • Elimination of Administrative Simplifications: The administration ended the "categorical eligibility" link between energy assistance (LIHEAP) and SNAP. This change requires more households to provide physical documentation of utility bills, which the CBO estimates will cut benefits by roughly $100 per month for about 600,000 households.
  • Restricted Immigrant Eligibility: Eligibility for SNAP was further restricted for many lawfully present immigrants, including some refugees and survivors of domestic violence.
Impact of the 2025 Government Shutdown
Separate from permanent legislation, the administration attempted to halt or reduce SNAP payments during a federal government shutdown in late 2025:
  • Partial Payments: The administration initially refused to authorize contingency funds, leading to a plan to issue only 65% of November benefits.
  • Legal Challenges: Although several federal judges ordered the administration to restore full benefits using emergency funds, the Supreme Court issued a stay allowing the administration to temporarily withhold a portion of the funding during the appeal process.
  • State Conflict: The USDA directed states that had already issued full benefits to "undo" those payments and warned them they could be held financially liable for "unauthorized" overissuances.