As the de minimis exception threshold has increased, more companies have taken advantage of the provision: Over 1 billion packages entered the U.S. under the de minimis exemption last year. But because the shipments are small, with an average value of only $47.50, de minimis imports accounted for only 2% of the roughly $3.2 trillion in imported goods.
Supporters have sought to justify the Administration's sweeping tariff agenda with arguments that the tariffs will revitalize American industry and that they will raise substantial revenue for the government. Yet many of the goods that will be impacted by this policy change -- such as shoes, plastic toys, and umbrellas -- are not items that it would be economically rational for our country to make. Does anyone seriously think we can rebuild our industrial base by making $6 flip-flops? And while the de minimis exemption covers many goods, because the shipments are of low value, the tariff revenue will be comparatively modest.
Despite the administration's lip service toward government efficiency, the policy change is threatening to be an administrative nightmare. U.S. Customs and Border Protection (CBP) has left many key implementation questions unanswered, such as how these customs duties will be collected and what data will be required from businesses. In response, numerous shipping services, such as DHL, have begun suspending the transport of business packages to the United States, and the national postal services of over 30 countries including the United Kingdom, Germany, India, and Singapore have signaled plans to temporarily halt shipping until more clarity is provided.