Overview

• The de minimis provision, which allows duty-free imports under $800, has been criticized for enabling trade abuses and harming U.S. businesses.
• President Trump initially banned de minimis shipments from China but reversed the decision within days, citing the need for clearer implementation plans.
• Critics argue the provision facilitates illicit activities, including forced labor and drug trafficking, while undermining U.S. labor and environmental standards.
• Businesses, particularly direct-to-consumer brands, report significant disruptions in supply chains and financial planning due to the sudden policy changes.
• Lawmakers and trade advocates call for comprehensive reforms to close the loophole, with bipartisan support for legislative action growing.