📦 FedEx & Trump's Reversal
On Feb. 1, Trump restricted duty-free imports under the $800 de minimis rule, citing fentanyl smuggling risks. Just days later, after a Feb. 6 White House meeting with FedEx chairman Fred Smith, the rule was paused. DeLauro blames pressure from FedEx, UPS, and DHL, accusing them of putting profits above American jobs and security. The U.S. imports from China surged, with 1.36B e-commerce parcels arriving in 2024, up from 134M a decade ago.
🚢 De Minimis Loophole Debate
De minimis lets packages under $800 enter duty-free with minimal inspection. DeLauro and the National Council of Textile Organizations argue this benefits China’s e-commerce giants while hurting U.S. manufacturers. Kim Glass, NCTO president, says 27 U.S. textile plants closed in 20 months due to ultra-cheap imports. FedEx and trade groups counter, saying banning de minimis raises costs for consumers and burdens border agencies.
📉 Policy Chaos & Economic Impact
Trump’s policy shift has caused uncertainty. The U.S. Postal Service halted, then resumed, de minimis shipping in early February, citing the need for an effective duty-collection plan. Critics say the rushed decision exposed weaknesses in enforcement. Without de minimis, Chinese e-tailers might shift to ocean freight, using U.S. warehouses to bypass tariffs. Meanwhile, the Express Association of America, representing FedEx, UPS, and DHL, continues lobbying to keep the exemption.
⚖️ What’s Next for De Minimis?
DeLauro wants Congress to eliminate de minimis, arguing enforcement gaps let forced-labor products slip through. A past bill proposed banning de minimis for nonmarket economies like China. But critics, including John Pickel of the National Foreign Trade Council, warn a full ban could raise prices and strain customs resources. For now, Trump’s pause leaves the debate open, with FedEx and lawmakers locked in a battle over the future of e-commerce imports.
Should Congress eliminate the $800 de minimis rule for imports?
