CPA Praises Trump Administration’s Action to Close De Minimis Loophole for China

CPA Praises Trump Administration’s Action to Close De Minimis Loophole for China

Calls for Total Repeal of the Loophole

WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) applauds the Trump administration for its decisive action to end the de minimis loophole for Chinese imports, effective immediately. As of today, all merchandise originating in China 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 strongly supports repealing the de minimis loophole entirely as it is incompatible with the rule of law and has overwhelmed U.S. ports entirely.

This long overdue action is invaluable in helping U.S. Customs and Border Protection (CBP) perform its trade enforcement functions, particularly in the fight against the smuggling of fentanyl precursors that is rampant in the de minimis environment, by encouraging more secure bulk containerized shipments as opposed to cargoes of individually wrapped consumer packages.

“This is a major victory for American workers, manufacturers, and law enforcement,” said Zach Mottl, Chairman of CPA. “For years, China has exploited the de minimis loophole to flood the U.S. with uninspected, untaxed, and often dangerous goods—from counterfeit products to fentanyl precursors fueling America’s opioid crisis. Closing this loophole is a critical step toward securing our borders, enforcing trade laws, and protecting American businesses.”

Last year, CPA joined 24 other organizations to launch the Coalition to Close the De Minimis Loophole. The Coalition represents thousands of voices, from the families of victims of fentanyl fatalities and nonprofit and nonpartisan organizations to labor unions, domestic law enforcement associations, domestic manufacturers, and business associations.

De Minimis: A National Security and Economic Crisis

CPA has extensively documented the failures of de minimis programs, including the staggering growth in unregulated shipments entering the U.S. under this threshold. The de minimis loophole, which allows shipments valued under $800 to enter the U.S. duty-free and largely uninspected, has ballooned into a national crisis. The numbers are alarming:

  • In FY 2023, over one billion shipments entered the U.S. under de minimis, with at least 78% of them bypassing traditional customs enforcement via the Type 86 Test and Section 321 Pilot programs.
  • In FY 2024, this number surged by 40% to more than 1.4 billion shipments, according to Felicia Pullman, CBP’s Executive Director of Trade Relations, overwhelming the ability of U.S. Customs and Border Protection (CBP) to effectively screen these imports.
  • These shipments often contain counterfeit, substandard, or dangerous goods—including fentanyl precursors and products made with forced labor.

Efforts at supposed “enhancements” like increased electronic data elements have failed to help CBP enforce even the most basic statutory limitation on de minimis—one shipment per person, per day. These lax controls have turned de minimis into a massive loophole, exploited by foreign vendors to ship unregulated, untaxed goods directly to American consumers.

CPA Calls for Total Repeal of De Minimis

While ending de minimis treatment for China is a crucial step, CPA urges the Trump administration to take the next logical action—fully repealing de minimis for all countries. The rule of law and fair trade enforcement demand it.

“The de minimis loophole is fundamentally incompatible with a secure trade policy that prioritizes national and economic security,” added Mottl. “The de minimis loophole overwhelms our ports, rewards bad actors, and cripples U.S. manufacturers and producers who have to compete against a flood of untaxed imports. If we are serious about reindustrializing America and securing our supply chains, we must close this loophole for all countries—not just China.”

CPA will continue to advocate for full de minimis repeal to ensure U.S. trade policy prioritizes national security, domestic producers, and American workers over the interests of multinational corporations and foreign exporters.

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