Will Affect All Low-Cost Goods Globally, Taking Effect August 29
WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today applauded President Trump for signing an executive order ending the de minimis trade loophole for low-value packages shipped from all countries. Previously, the administration had taken decisive action to eliminate the de minimis loophole for imports from China and Hong Kong – where a significant amount of the de minimis packages originate – effective May 2. This move now ensures that goods from all over the world are no longer able to enter the U.S. market duty-free and without inspection under the $800 threshold.
Closing de minimis means that commercial shipments from overseas vendors must enter the United States through standard customs procedures, submit full import documentation, and pay applicable duties and taxes—a long-overdue reform to restore order and accountability to America’s trade system.
CPA has long supported the total repeal of the de minimis loophole as it is incompatible with the rule of law and has overwhelmed U.S. ports entirely.
For years, China has exploited the de minimis loophole which served to flood the domestic market with untaxed, uninspected, and sometimes dangerous goods – including counterfeit products and fentanyl precursors – undermining U.S. businesses. Under the prior policy, nearly 1 billion packages per year—most from China—entered the U.S. duty free without scrutiny or meaningful regulation.
“This is simply a monumental victory for American workers, manufacturers, and national security. President Trump’s move to end abuse of the de minimis loophole is a critical step forward, and today’s executive order effectively finishes the job that the administration set out to do with China back in May,” said Jon Toomey, President of CPA. “The de minimis loophole was a massive backdoor for untaxed, uninspected imports from all countries – and our members are proud to see the administration go further than just China to end de minimis treatment so that every foreign seller plays by the same rules as American businesses.”
Repealing de minimis is necessary for U.S. Customs and Border Protection’s (CBP) trade enforcement functions, particularly in the fight against mail-order narcotics. Repealing de minimis will encourage shipments via the more secure, bulk, containerized shipments opposed to cargoes of individually wrapped consumer packages.
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