Arlington, VA– The de minimis exemption, which allows low-value imports to enter the U.S. without tariffs or extensive customs procedures, has evolved from a cost-saving measure into a controversial trade policy. Originally established in the Tariff Act of 1930 and revised multiple times since, the exemption was intended to streamline imports by excluding shipments that would cost more to process than they would generate in tax revenue.
While the exemption facilitates international trade and supports small businesses, critics argue that it creates trade loopholes, fosters unfair competition, and poses security risks. These concerns motivated President Trump’s recent Executive Order aimed at phasing out the de minimis exemption.
Rather than eliminating it entirely, Trump should strike a balance between the benefits of streamlined trade and the need for oversight, security, and—crucially—consumer access to low-cost goods. Reforming de minimis in a consumer-friendly way means increasing transparency and ensuring importers are held accountable for their shipments.
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