House Ways and Means Committee considers universal de minimis ban amid U.S.-China trade war
By lauraharris // 2025-05-25
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  • The House Ways and Means Committee approved a tax bill to permanently end de minimis exemptions for commercial shipments by July 2027, closing a loophole exploited by Chinese e-commerce firms to bypass tariffs and customs scrutiny.
  • Critics argue the $800 de minimis threshold enables smuggling, disadvantages U.S. retailers and deprives the government of tariff revenue, while overwhelming CBP with millions of daily shipments (many from China) that lack proper screening for illicit goods like fentanyl.
  • Textile and retail groups advocate for an accelerated ban, citing risks to domestic manufacturers and consumer safety, noting logistics systems can already adapt to stricter rules.
  • Despite the push to tighten de minimis, Trump reduced new tariffs on some Chinese goods from 145 percent to 30 percent for 90 days and delayed fee hikes on postal shipments, offering temporary relief to retailers.
  • The White House plans to eliminate de minimis entirely once systems are in place to impose tariffs on millions of daily parcels, aligning with broader trade negotiations where Trump touted "great progress" with China.
The House Ways and Means Committee has recently approved a sweeping tax bill that includes a provision to permanently end de minimis exemptions for commercial shipments from all countries by July 2027. In 2016, Congress initially raised the de minimis threshold from $200 to $800 to help small businesses engage in global trade. However, the exemption has come under fire as Chinese e-commerce giants exploit the loophole, overwhelming U.S. Customs and Border Protection (CBP) and raising concerns about illicit goods. Critics argue the rule enables smuggling, disadvantages domestic retailers and deprives the U.S. of billions in tariff revenue. CBP processes over four million de minimis shipments daily but lacks sufficient data to screen for fentanyl, counterfeit goods and undervalued imports. In turn, the House Ways and Means Committee approved a tax bill that includes a provision to end de minimis for all commercial shipments by July 1, 2027, this May. Industry groups, including the National Council of Textile Organizations (NCTO), are pushing for an even faster ban, citing risks to manufacturers and consumer safety. "As the bill makes its way through the legislative process, we strongly support a more aggressive timeline to implement a permanent ban on de minimis globally, given its significant harm to manufacturers, retailers, and the fight against fentanyl and other illegal products. Express shippers have already transitioned to processing all Chinese imports through sophisticated logistics systems, demonstrating their ability to comply with the president’s executive orders and pivot quickly," said NCTO President Kim Glas.

Trump lowers steep tariffs on small-dollar shipments from China and Hong Kong

As the House Ways and Means Committee approved to permanently end de minimis exemptions, President Donald Trump has rolled back steep tariffs on small-dollar shipments from China and Hong Kong. On May 2, the U.S. rescinded duty-free treatment for low-value Chinese imports, subjecting them to the same tariffs as bulk shipments. Before that, the de minimis rule allowed individuals to import goods valued under $800 per day without formal customs scrutiny, fueling a boom in cross-border e-commerce. About two-thirds of all de minimis shipments entering the U.S. originate from China. (Related: Trump's tariffs on Chinese goods send Amazon sellers into panic.) However, in a surprise reversal, Trump signed an executive order lowering the new 145 percent tariffs on certain Chinese goods to 30 percent for 90 days. The executive order also reduced processing fees for low-value postal shipments from China, canceling a planned June 1 fee hike from $100 to $200 per item. These costs remain elevated, but the reprieve gives retailers time to adjust supply chains. The White House also announced its plans to utilize emergency powers to eliminate the de minimis exception once systems are established to impose duties on millions of daily parcels, including those shipped via postal services. "A very good meeting today with China, in Switzerland. Many things discussed much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!" Trump posted on his Truth Social platform on May 11. Head over to Trump.news for related news. Watch Tom Philipson and Steve Moore explaining that President Donald Trump uses tariffs effectively in this clip.
This video is from the NewsClips channel on Brighteon.com.

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Sources include: Freightwaves.com WhiteHouse.gov Newsweek.com Brighteon.com
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