🇺🇸 Lawmakers Move to Close De Minimis Loophole, Support U.S. Industry
In a bipartisan effort to strengthen fair trade and protect domestic industries, U.S. Senators Sheldon Whitehouse and Lindsey Graham have introduced the “Closing the De Minimis Loophole Act.” The proposed legislation targets a current trade rule that allows goods valued under $800 to enter the U.S. duty-free—often without proper oversight.
This “de minimis” loophole has become a favored channel for foreign exporters, particularly from China, to send low-cost, untaxed products into the U.S. market. The result: unfair competition that undercuts American manufacturers—especially in the textile and apparel sectors—and poses serious safety and labor concerns.
The National Council of Textile Organizations (NCTO) strongly supports the bill, citing growing volumes of duty-free shipments that may be produced under forced labor conditions or lack compliance with U.S. safety standards. These unchecked imports have contributed to factory closures and job losses across the U.S. textile industry.
The proposed act would:
- Tighten customs data requirements
- Impose a minimal processing fee on de minimis shipments
- Improve enforcement against counterfeit or unsafe imports
This legislation is designed to level the playing field, protect American jobs, and ensure imported goods meet safety and ethical standards—a critical step toward building a more secure and equitable trade system.