The US National Council of Textile Organizations (NCTO) has commended the Trump Administration's move to end the de minimis exemption for low-value shipments from China and Hong Kong, but urges him to extend this to all countries in the near future.

The de minimis loophole has been linked to the shuttering of 28 textile mills over the last 22 months, according to NCTO president and CEO Kim Glas.

She said: “We are grateful to President Trump and his administration for closing the destructive de minimis loophole that has allowed unsafe and illegal Chinese goods— including goods made with forced labour —to flood the US market duty-free and largely unchecked for years.”

She added: “Today’s action by the administration is an important step forward to help rebalance the playing field for American manufacturers, preserve good-paying American manufacturing jobs, spur more investment and innovation in manufacturing facilities here at home, and close the backdoor to China once and for all. We urge the administration and Congress to move swiftly to end de minimis for commercial shipments from all countries to prevent circumvention and to make sure Made in China products cannot enter the United States through third countries. The US textile industry stands ready to assist the administration as it continues its work to end the de minimis exemption and implement this critical provision.” 

Glas also argued the US textile sector is vital for national security, providing over 8,000 different products for military use as well as industrial and consumer markets. Plus, she said it sustains local economies throughout the nation with a workforce of 471,000 people.

What’s next after the closure of de minimis? 

Following the closure, all imported goods arriving outside of the international postal network from China or Hong Kong and valued at $800 or less that were previously exempt under de minimis, will be required to comply with standard duties as per established entry and payment procedures.

In addition, postal items within this value range sent through the international postal network will be subjected to a duty rate of 30% of the item’s value or $25 per item, whichever is higher. This rate rises to $50 per item post 1 June.

According to the US customs agency, shipments under de minimis exemption rose by more than 600% from approximately 139m a year in Fiscal Year 2015, to more than 1bn annually in 2023.

The number of shipments entering the US via de minimis reached 1.36bn in 2024. 

Shein and Temu have both signalled that price increases are imminent due to these adjustments in global trade policies.

Parkdale Mills chairman and CEO Anderson Warlick said: “I am pleased to see President Trump take action to eliminate de minimis for products from China, and I encourage the administration to end de minimis for imports from all countries so we textile manufacturers can compete on a more level playing field.”

MMI Textiles founder and CEO Amy Bircher Bruyn said: “The de minimis loophole has wreaked havoc on the US textile industry by enabling duty-free access for massive volumes of fast fashion imports, largely from China. This policy undermines American manufacturers who play a critical role in our national security and industrial resilience.”

Beverly Knits CEO Ron Sytz said: stated: “I am truly thankful to President Trump for closing the de minimis loophole for Chinese imports. With the administration’s action, our company which provides hundreds of jobs and supports our community and the US economy, will once again have a level playing field that will allow us to expand, invest and hire more associates here in the United States.”