Sunday, February 22, 2026-President Donald Trump is intensifying his campaign to shut down a long-standing trade loophole that let millions of low-value goods enter the United States without import taxes, a move now at the center of a broader trade policy showdown.
The so-called de minimis exemption — which allowed parcels valued below roughly $800 to pass duty-free — was eliminated for goods from China in 2025 and later for imports from the rest of the world in mid-2025. Trump and his advisers argue that closing this loophole is essential not only to level the playing field for American manufacturers and retailers but also to curb the flow of illicit products, including deadly opioids, that previously slipped into the U.S. tax-free.
This policy shift comes at a volatile moment for U.S. trade and economic strategy. Just days ago, the U.S. Supreme Court struck down much of Trump’s broader tariff agenda for exceeding presidential authority, prompting the administration to impose new import duties under alternative legal frameworks.
Despite that setback, the White House’s executive orders make it clear that the elimination of the de minimis loophole remains a cornerstone of Trump’s trade agenda — underscoring its perceived urgency to protect domestic industries and national security interests.
But the consequences are already being felt across the supply chain and among everyday consumers. Retailers, online marketplaces, and shoppers are bracing for higher prices on imported goods that once qualified for tax-free entry, from everyday household items to tech accessories and fashion.
Critics warn that the policy could worsen inflationary pressures and hamper small businesses reliant on affordable foreign imports, even as allies and trading partners express frustration over continued tariff unpredictability. The clash over this import tax loophole highlights an increasingly contentious debate over how the U.S. should balance trade, consumer costs, and economic competitiveness in the global marketplace.
0 Comments