US Senators Sheldon Whitehouse (D-RI) and Lindsey Graham (R-SC) have introduced the Closing the De Minimis Loophole Act, bipartisan legislation aimed at ending a long-standing trade exemption that allows packages valued under $800 to enter the US without tariffs or inspection.

The legislation comes amid mounting concerns over illicit drugs, particularly fentanyl, entering the country through this loophole. Currently, millions of packages many from China bypass tariffs and full customs checks due to the ‘De Minimis’ threshold, creating vulnerabilities in the system.

“Given the explosion of e-commerce and the rise of complex global supply chains, this loophole must be closed to stop cartels and criminals from exploiting our customs system,” said Whitehouse. He emphasized that the bill will also protect domestic industries, including Rhode Island's textile sector, from unfair foreign competition.

Graham echoed these concerns, stating the measure will help curb the influx of illicit drugs and support manufacturers in his home state of South Carolina. “It’s about protecting Americans and ensuring fair competition,” he added.

The Closing the De Minimis Loophole Act would immediately eliminate de minimis treatment for shipments from China and phase out the exemption for other countries over a four-month period. During this time, the Treasury Secretary will initiate a rulemaking process to equip US Customs and Border Protection with effective enforcement tools and coordinate procedures with the Postal Service.

The legislation is endorsed by key industry and labor groups, including the National Council of Textile Organizations (NCTO), United Steelworkers, and the National Association of Police Organizations. NCTO President Kim Glas hailed the bill as the “most comprehensive legislative solution” to a loophole that has allowed over 4 million unchecked packages into the U.S. daily, often containing goods made with forced labor.

Law enforcement and anti-drug advocacy groups also backed the bill, citing its potential to disrupt major fentanyl trafficking channels. Facing Fentanyl founder Andrea Thomas called the act “critical to stopping deadly shipments from entering our communities.”

The US textile industry employs nearly 471,000 workers and generates $64 billion annually. This legislation follows previous bipartisan efforts by Whitehouse and Graham to bolster trade law enforcement and customs modernization.