US Senate garners industry praise for passing bill that could end de minimis loophole

Textile industry leaders have praised the US Senate’s decision to pass a budget reconciliation package that could potentially see the permanent end of de minimis for commercial shipments from all countries.

The provision, which would end de minimis treatment by July 1, 2027, comes as part of a broader budget bill addressing tax code provisions and spending, among other things. President Donald Trump has requested for the bill to arrive on his desk by July 4.

In its current format, the de minimis loophole has allowed low-value imports worth under 800 dollars to enter the US duty-free. In recent years, it has become the centre of trade debates, as textile and retail organisations have criticised the exemption for allowing excessive shipments from other countries to bypass regulations.

The loophole had officially closed for Chinese imports to the US in May, however, trade organisations had called for a full halt on the exemption for other countries too, in order to avoid an influx of cheap Chinese goods to enter from third countries.

The recent extension has thus been praised by such firms, including the National Council of Textile Organisations (NCTO), the CEO of which, Kim Glas, commended Senate leaders for including the permanent end of de minimis in the bill.

Glas stated: “This provision would help rebalance the playing field for the domestic textile industry, which has seen the closure of 28 plants over the past 23 months. We are urging congressional leaders to ensure inclusion of this critical provision in the final version of the reconciliation bill this week, which would bring us one step closer to marking a significant milestone for the US textile industry and a broad coalition of organisations dedicated to advocating for ending this destructive loophole.”