The de minimis loophole has been under a microscope during the past few months. The practice, which allows duty-free imports of goods valued at less than $800 per day per person, has been in place (with variations) more or less since 1930. On average, U.S. Customs and Border Protection processes over 4 million de minimis shipments into the U.S. each day.

Executive Actions

  • President Donald Trump signed an executive order on April 2 to eliminate the de minimis exemption for packages worth less than $800 from China and Hong Kong.
  • In mid-April, the administration announced an additional duty of 120% on the value of these imports starting May 2, plus a per-postal-item fee increase. Both of the measures were adjusted downward in May.
  • As of this writing, imports from China and Hong Kong that were previously exempt under de minimis are subject to 54% tariffs and a $100 flat fee per package. This is likely to change again in August as the 90-day pause on China tariffs expires.


Legislative Efforts

In March, Rep. Linda T. Sánchez (D-Calif.) introduced the Closing the De Minimis Loophole Act, a bill to eliminate the de minimis policy.

“Closing the de minimis loophole is essential to protecting American manufacturing and shielding families from fentanyl and other dangerous products,” said Sánchez, who is the ranking member of the Ways and Means Trade Subcommittee, in a press release. 

If enacted, the bill would:

  • Immediately end de minimis treatment for packages from China and phases out de minimis for all other countries after a four-month transition period.
  • Direct the Treasury Secretary to oversee a rulemaking process during the four-month transition, ensuring that U.S. Customs and Border Protection has the necessary tools and procedures to implement the termination of de minimis for all countries smoothly and efficiently.
  • Direct the Treasury Secretary to consult with the Postmaster General to establish appropriate fees and entry procedures, aiming for consistency between postal and other shipments wherever feasible.


In May, senators Sheldon Whitehouse (D-R.I.) and Lindsey Graham (R-S.C.) filed an identical bill in the Senate in a bipartisan effort. In August 2024, Whitehouse and Graham introduced legislation to strengthen the Department of Justice’s ability to investigate and prosecute trade-related crimes.

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“Given the explosion of e-commerce and increasingly complex global supply chains, we need to modernize our customs laws to better stop cartels and international criminals from slipping deadly fentanyl into our communities,” said Whitehouse in a press release. “Closing the de minimis loophole will also protect Rhode Island workers and manufacturers, while punishing shady foreign companies for skirting our trade laws to undercut domestic companies.”

Promo Divided On De Minimis

While many trade groups have praised these bills, the outlook in the promotional products industry is mixed, with some companies benefiting from the exception and others considering it an unfair advantage. PPAI is not taking a position on the issue, and our lobbying partners in Washington don’t see these bills gaining much traction.

However, if you want to call your senators and representatives to voice your own opinion on de minimis, it’s easy to call their offices in Washington using the Capitol Switchboard (9 a.m. to 5 p.m. Eastern) at 202-224-3121. A live operator will connect you directly with the office you request. You can also look up contact information for any member of Congress using the directories for the House and Senate.

Please contact Rachel Zoch, PPAI’s public affairs manager, at rachelz@ppai.org if you have any questions.