For Immediate Release: July 31, 2025
U.S. manufacturers will see a more level playing field.
Washington, D.C. — President Trump signed an executive order (EO) on Wednesday that ends the de minimis exemption for goods valued under $800 for all countries, starting Aug. 29. The Alliance for American Manufacturing (AAM) and a coalition of retail, law enforcement, and other trade groups called on the president to end the de minimis loophole immediately in a letter sent July 23.
“Bad actors have long abused America’s own policy to gain an outrageous advantage over American manufacturers,” AAM President Scott Paul said. “These imports have come into our country by the millions every day, exposing American consumers to illegal, counterfeit and toxic products. The de minimis loophole has plagued our manufacturers and makers for far too long already. We applaud the Trump administration for taking a strong step toward righting this wrong.”
U.S. Customs and Border Protection processes an average of 4 million de minimis shipments every day, according to the agency.
“There’s a terrible cost hidden behind these cheap wares, and it’s paid by the men and women on the factory floors both here and abroad,” Paul said. “The de minimis exemption invites importers and shippers to cheat the system and exploit workers.
Wednesday’s EO is an urgent response to the de minimis loophole and builds on the White House’s prior action to limit exploitation of the policy. In April, the president signed an EO suspending de minimis treatment for goods from China and Hong Kong that went into effect on May 2.
The budget reconciliation package’s end of de minimis treatment for commercial packages will go into effect worldwide in July 2027. However, Wednesday’s EO ensures that American consumers and manufacturers will have to wait no longer.
This EO is the culmination of yearslong efforts by both Democrats and Republicans to reform de minimis. In May, Sens. Sheldon Whitehouse (D-R.I.) and Lindsey Graham (R-S.C.) introduced the Closing the De Minimis Loophole Act, which was previously introduced by Rep. Linda Sánchez (D-Calif.) in the House in March.
“Closure of the de minimis loophole is an important step forward, but there’s still more work to be done in leveling the playing field for U.S. manufacturers,” Paul said. “Now the White House and Congress must both focus their efforts on fully enforcing U.S. trade law and prosecuting trade crime violations. Bipartisan bills like the Protecting American Industry and Labor from International Trade Crimes Act and the Leveling the Playing Field Act 2.0 will help achieve these goals.”
The Protecting American Industry and Labor from International Trade Crimes Act would establish a Department of Justice task force to investigate and prosecute trade-related crimes. And, the Leveling the Playing Field Act 2.0 would modernize U.S. trade remedy law by combating many of China’s most egregious practices. Among other measures, the bill would create a new successive anti-dumping and countervailing duty investigation targeting repeat offenders.
Paul is available for interviews.
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Author: Matthew McMullan
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