On Sept. 13, 2024, the Biden administration announced its plan to end the de minimis trade rule. I believe this to be essential despite the short-term inconvenience it may cause for consumers. As much as I love the low prices on platforms like Shein and Temu, these artificially cheap goods have undermined American jobs and industries for far too long. It’s time to close the loophole that has let foreign companies exploit our markets at the expense of U.S. workers. Yes, prices may rise, but the benefits of stronger domestic manufacturing and better regulation of imported goods make this a trade-off we need to accept.
American consumers have reaped the benefits of the de minimis rule. The New York Times has stated that the rule allows goods under $800 to bypass import tariffs. This loophole has enabled foreign companies to flood the U.S. market with low-cost goods, mostly from China. Platforms like Shein and Temu capitalize on this, offering prices that domestic retailers simply can’t match. As someone who occasionally buys from these platforms, I get the appeal. I’ve purchased items like AirPods cases for $5 instead of $15, and it’s hard to argue against such savings.
Artificial affordability comes at a cost. The influx of cheap foreign goods has hit American workers hard. These imports have undercut warehouse jobs, manufacturing positions and countless small businesses. Low prices might be convenient for consumers, but they’re devastating for those trying to make a living in industries struggling to compete. This is more than just an issue of economics — it’s about restoring fairness to the system.
Shein executives have told NPR that they are already trying to diversify their supply chains and improve their labor practices. Without stronger regulation, though, we have no way of knowing if those claims are legitimate. This reform could help ensure that we’re not only paying fair prices but also supporting ethical production standards.
It’s important to recognize that higher prices could have an upside. American businesses, especially smaller ones, may finally have a fighting chance against these low-cost foreign competitors. By eliminating the unfair advantage of the de minimis rule, we’ll create space for local businesses to thrive, restoring jobs lost to cheaper imports. I’m going to hate to see prices go up on Shein, but at least that secures the long-term economic health of the U.S.
According to CNBC, a 10-digit tariff classification number will be introduced. This marks the efforts by the administration to reform the de minimis rule. This classification system requires importers to provide specific, detailed information about their shipments, which will allow authorities to better track and vet goods coming into the U.S. market. In theory, this will make it harder for companies to exploit the de minimis rule by disguising the nature or origin of their products.
The new classification will also make it easier for the U.S. government to enforce tariffs and trade regulations. By providing a clearer picture of what’s being imported, the 10-digit system can prevent illicit goods, such as counterfeit products or those that don’t meet U.S. safety standards, from slipping through the cracks. This is especially important for platforms like Shein and Temu, which face criticism for bypassing duties that major competitors, like H&M, have to pay.
In recent years, de minimis shipments have skyrocketed in recent years, growing from $140 million a decade ago to over $1 billion today, according to the White House. This kind of unchecked growth has given foreign companies an outsized influence on the U.S. economy, one that can’t be sustained if we want to prioritize domestic industries.
This reform is a necessary step toward balancing consumer convenience with economic sustainability. As much as I’ve benefited from cheap imports, I can’t ignore the broader implications. The de minimis rule was always a short-term fix — a loophole that allowed us to avoid the real cost of global trade. Now, we’re paying for it in lost jobs and weakened industries.
It’s never easy to say goodbye to something that makes our lives more affordable. The de minimis rule has outlived its usefulness. It’s time to close the loophole, even if it means we’ll have to adjust to higher prices and fewer bargain deals. The benefits, including more jobs for American workers, stronger regulation of imported goods and a fairer playing field for U.S. businesses, far outweigh the costs. In the long run, this reform will lead to a stronger, more resilient economy — one that prioritizes American industries and workers over artificially cheap foreign goods.
The de minimis rule may have been convenient, but it is high time we start making investments in the future of American manufacturing.
Ruben Ortiz, FCRH ’28, is a political science major from Long Island, N.Y.
