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December 8, 2025

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07/31/2025

President Trump Ends Unfair “De Minimis” Tariff Exemption, A Major Victory in Securing the Homeland (7/31/25)

President Trump signed an Executive Order suspending duty-free de minimis tariff exemptions for low- value shipments from all countries. His order empowers Homeland Security Secretary Kristi Noem to close this loophole which was used to avoid tariffs and smuggle deadly synthetic opioids like fentanyl into the United States. “For decades, bad actors have taken advantage of America’s de minimis process by smuggling in deadly narcotics, harmful products, and other contraband in hidden products,” said Department of Homeland Security Assistant Secretary Tricia McLaughlin. “This loophole led to the death of thousands of Americans, fueled the opioid crisis, and harmed U.S. consumers. This decision to end de minimis will save American lives, increase revenue, and protect the American consumer and entrepreneur.” Under the de minimis treatment, imported goods that are valued at or under $800 were exempt from tariff duties. Countries exploited this system to flood the American market with cheap goods that undercut American manufacturers and cost American jobs. This exemption also allowed drug cartels and other criminal organizations to smuggle drugs and other contraband into our country. Over the past decade the volume of de minimis shipments to the United States exploded, growing from 134 million shipments in 2015 to over 1.36 billion shipments in 2024. De minimis shipments accounted for 90% of all cargo seizures in FY 24. These shipments often broke the law with 98% of narcotics seized from cargo falling under the de minimis exemption, as well as 97% of counterfeit items seized. Now, thanks to President Trump’s Executive Order, this loophole is closed. U.S. Customs and Border Protection is empowered to enforce tariffs on these goods and can continue to protect the homeland from the smuggling of deadly synthetic opioids like fentanyl and counterfeit goods. This will save American lives, protect American jobs, and restore billions in lost revenue.