Lawmakers Scrutinize De Minimis Rule Amid Concerns Over Cheap Chinese Imports
Bipartisan efforts emerge to reevaluate the trade rule that facilitates the import of goods under $800 duty-free, amid rising concerns over competitiveness, safety, and human rights.
- The de minimis rule, allowing parcels under $800 to enter the U.S. duty-free, is under scrutiny due to its role in enabling the import of cheap Chinese goods, including those from fast fashion retailer Shein.
- Lawmakers from both parties are questioning the rule's impact on American competitiveness, consumer safety, and human rights, with some proposing legislation to exclude non-market economies like China.
- The rule has facilitated the explosive growth of cross-border e-commerce, with over 1 billion de minimis packages entering the U.S. in 2023, a significant increase from previous years.
- Critics argue that the rule allows for the bypassing of tariffs and laws against importing products made by forced labor, illicit drugs, or unsafe materials, while defenders claim it benefits American consumers and small businesses.
- Law enforcement agencies report that the de minimis provision has contributed to the drug crisis, with a significant amount of fentanyl seized last year coming into the country in these small packages.