US Senate passes bill to end de minimis loophole by 2027, NCTO applauds efforts
The US Senate has passed a key budget reconciliation bill that includes a significant provision aimed at permanently ending the de minimis duty-free treatment for commercial shipments from all countries by July 2027. The provision has received strong support from the National Council of Textile Organizations (NCTO), which has long campaigned against what it views as a harmful loophole in US trade law.
The bill is now set to move to the House of Representatives. Once passed, it will go to President Trump’s desk for approval, with the aim of securing final legislation before the July 4 holiday.
Kim Glas, president and CEO of NCTO, expressed strong support for the bill, saying, “On behalf of the US textile industry, I would like to commend Senate leaders for including an important provision in the broader budget reconciliation bill that would permanently end de minimis for commercial shipments from all countries, effective July 2027.” Glas further pointed out that the Senate’s move mirrored a similar provision passed by the House earlier in May.
She also thanked Senators Lindsey Graham (R-SC) and Sheldon Whitehouse (D-RI) for their bipartisan leadership in pushing for this change, calling their efforts vital in addressing a longstanding issue. “We sincerely appreciate their leadership on this matter. The closure of this loophole will help protect American manufacturers and workers, and restore fairness to the market.”
The de minimis loophole has allowed millions of low-value shipments, especially from China, to enter the US market duty-free, undermining the domestic industry. Glas highlighted that this provision would “help rebalance the playing field for the domestic textile industry,” which has already faced the closure of 28 plants in the past 23 months.
Glas stressed that the current system facilitates the entry of unsafe and unethical goods.
De Minimis acts as a gateway for facilitating four million packages a day, many of which contain toxic and unsafe products, including goods made with forced labor, as well as illicit narcotics like fentanyl.
Kim Glas, president and CEO of NCTO
The NCTO president also praised actions taken by the Trump administration to curb de minimis shipments from China, noting that the executive branch had already used its authorities to limit Chinese goods under the system. She urged the administration to extend these measures to include commercial shipments from all countries until the legislation is fully implemented.
The textile industry is now awaiting final confirmation from the House, as stakeholders push for the swift enactment of the new trade rule. If successful, this move could mark a turning point for US manufacturers facing increasing competition from unregulated, low-cost imports.
