The US collected approximately $1 billion more in taxes after abolishing the de minimis exemption mechanism for low-value imported goods.

The U.S. government has increased its tariff revenue by approximately $1 billion since abolishing the de minimis exemption – a mechanism that previously allowed shipments valued at under $800 to be imported into the U.S. without incurring tariffs.

According to new data provided by the U.S. Customs and Border Protection (CBP), this revenue has been recorded since this spring, when the White House began scaling back and then completely eliminating the de minimis tax.

Previously, de minimis regulations had contributed to a surge in American consumer purchases on Chinese e-commerce platforms such as Temu, Shein, and Alibaba. However, CBP data shows that, with the implementation of new tariffs, American consumers have significantly reduced their overseas orders.

President Donald Trump first closed this "loophole" for goods originating from mainland China and Hong Kong (China) in May 2025, before expanding its application to all imports under $800 from all countries. Trump argued that this measure would not only increase tax revenue for the federal budget, but also help prevent drugs and illegal goods from entering the US, as shipments would be subject to stricter CBP inspection procedures.

According to CBP, since the de minimis loophole was closed, the number of seizures of low-value goods deemed unsafe or non-compliant has increased by 82%.

Before the policy change, an average of about 4 million low-value packages were imported into the US daily without inspection. However, by the end of August 2025 – when the new policy began to apply to China and Hong Kong – the number of imported packages had dropped to about 1 million packages per day.

Currently, applicable tariffs range from 10% to 50%, depending on the country of origin. In some cases, importers may have to pay a fixed fee of $80 to $200 per shipment, but this fixed fee mechanism will expire next February.

Although closing the de minimis loophole significantly increased U.S. government revenue, it also created considerable difficulties for American businesses and consumers. Many shoppers did not anticipate having to pay taxes directly if the seller or shipping company did not factor this into the price of the goods.

The biggest negative impact is believed to fall on low-income households – those already struggling with rising living costs. A study published in February 2025 by economists from UCLA and Yale found that approximately 48% of de minimis shipments were delivered to the lowest-income areas in the U.S., while only 22% were delivered to the wealthiest areas.

Notably, to close this tariff loophole, President Trump invoked the International Emergency Economic Powers Act (IEEPA) – a law he used extensively to impose the majority of new tariffs during his second term as U.S. President.

However, this authority could soon be reviewed. The U.S. Supreme Court is expected to rule in early 2026 on whether the president has the authority to impose tariffs in that way. If the court rules against the administration, importers – including American consumers who have paid tariffs on low-value shipments – could be reimbursed for the taxes paid.

Source: VTV

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