Trump closes the de minimis loophole
Move reclaims America's trade sovereignty
COMMENTARY
By Peter Navarro - Tuesday, August 5, 2025
OPINION:
President Trump closed one of the biggest loopholes in American trade policy last week by eliminating the “de minimis rule” for the world. This move will add more than $100 billion to government coffers while protecting American workers and businesses from the ravages of unfair trade.
For decades, U.S. trade law allowed low-value imports to enter duty-free without formal customs declarations, a policy perhaps sensible when thresholds were minimal and e-commerce nonexistent. However, the $800 de minimis exemption has become a glaring loophole, costing billions of dollars in lost revenue and exposing U.S. manufacturers to relentless, unfair competition.
This crisis began in 2015 when Congress, under intense lobbying from corporations such as Amazon, eBay, FedEx and UPS, quadrupled the de minimis threshold from $200 to $800. K Street lobbyists claimed the move would streamline cross-border trade. Instead, it created an open invitation for global e-commerce giants, including Alibaba, Shein, Temu, AliExpress and Wish, to bypass U.S. tariffs and regulations.
By shipping massive volumes of cheap, often heavily subsidized, individually packaged products directly to American consumers, these vendors systematically evade taxes, tariffs and rigorous inspections that domestic producers and traditional importers must follow.
Major U.S. trading partners wisely refused to follow Congress’ lead. Germany’s threshold remains around $155, Canada’s about $110, Japan’s roughly $70 and Mexico’s just $50. This stark disparity magnifies the disadvantages for American producers, encourages offshoring and severely weakens domestic industries.
Mr. Trump’s executive order puts an immediate stop to this abuse. Starting Aug. 29, all goods — regardless of value, origin or shipping method — must enter the United States through formal customs entry procedures. No more loopholes, no more “duty-free gifts” disguised as commerce and no more enforcement blind spots. With rigorous documentation and detailed scrutiny now mandatory, this measure sharply strengthens customs’ ability to detect fraud and protect American businesses.
The administration has also established a six-month transition process for the international postal network. During this period, postal shipments previously eligible for de minimis treatment will have a specific duty based on the tariff rate associated with their country of origin. That system allows international carriers to adapt while maintaining full compliance with U.S. law. The benefits of this Trump reform are economic and strategic.
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READ MORE: https://www.washingtontimes.com/news/2025/aug/5/trump-closes-de-minimis-loophole/
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