The National Council of Textile Organizations (NCTO) has applauded the Senate's recent passage of a sweeping budget reconciliation package. This bill includes a critical provision that would permanently end de minimis treatment for commercial shipments from all countries by July 2027.
Kim Glas, President and CEO, NCTO, commended Senate leaders for incorporating this measure, which mirrors a similar provision passed by the House in May. The Senate's move sends the bill to the House for final approval, with the goal of reaching President Trump's desk before the July 4 holiday.
Glas specifically thanked Senators Lindsey Graham and Sheldon Whitehouse for their leadership in developing this legislative solution. The ‘de minimis’ loophole currently allows millions of low-value packages, often $800 or less, to enter the U.S. duty-free and with minimal scrutiny. This has created an uneven playing field for American manufacturers and workers, contributing to the closure of 28 domestic textile plants in the past 23 months.
Beyond economic harm, NCTO highlights, ‘de minimis’ acts as a conduit for potentially unsafe, toxic, and unethically produced goods, including those made with forced labor. It also facilitates the entry of illicit narcotics like fentanyl into the U.S. market. The organization strongly urges congressional leaders to ensure this vital provision remains in the final reconciliation bill.
NCTO also expressed its gratitude towards the Trump administration for its previous executive actions that ended ‘de minimis’ access for Chinese goods, which constitute roughly two-thirds of all such shipments. They are now urging the administration to use its executive authority to immediately close this loophole for commercial shipments from all countries until the legislation takes full effect.
The US textile supply chain currently employs 471,046 individuals, with the value of shipments reaching $63.9 billion in 2024. In 2024, US’ exports of fiber, textiles, and apparel stood at $28.0 billion, demonstrating the industry's significant contribution to the American economy. Ending ‘de minimis’ is been seen as a crucial step towards rebalancing the trade landscape and protecting domestic industries and consumers.
