🧵THREAD: It's hard to overstate how positive this development is for the American people.
Let's talk about how "de minimus entries" have been used to harm the American people and incentivize corruption for decades. (1/19)
Let's talk about how "de minimus entries" have been used to harm the American people and incentivize corruption for decades. (1/19)
https://twitter.com/typesfast/status/1885878378408149383
(2/19) First, for a bit of background - “de minimus entries” refer to low-value shipments exempt from duties and taxes when imported into the United States.
(3/19) Under Section 321 of the Tariff Act of 1930, shipments valued at < $800 (this number was $200 before 2016) can enter the U.S. without paying import duties or undergoing rigorous customs screening.
(4/19) An international shipment valued at < $800 bypasses standard customs duties, taxes, and formal entry procedures. The rule applies per shipment, per day, per importer, so companies can split large orders into multiple small shipments to take advantage of this exemption.
(5/19) Because these shipments don’t undergo rigorous inspection, it's easier and faster for foreign sellers to ship products directly to U.S. consumers while avoiding proper due diligence.
"De minimus entries" are specifically harmful because:
"De minimus entries" are specifically harmful because:
(6/19) 1. They incentivize tariff evasion. In 2022, a staggering 685 million shipments imported to the US benefited from the de minimus exemption. This means fraudulent companies that have benefitted heavily from this exemption (like Temu) paid $0 in import taxes on these goods.
(7/19) Why would these companies change their operating procedures if our corrupt loopholes allow them to continue as is? These foreign adversaries are literally incentivized to take advantage of Americans.
(8/19) 2. They increase counterfeit & unsafe products. De minimus shipments don’t face the same rigorous inspections as traditional imports, so counterfeit goods, fraudulently marketed products, fake medications, etc., can enter the US largely unchecked.
(9/19) A recent Business Insider article from November 2024 reported that authorities in South Korea found toxic substances, including lead, in Temu and AliExpress children's products, with one jacket containing 622 times the legal limit for such substances.
(10/19) So, while legitimate US brands are held to a higher standard regarding the quality of their products, cheap crap made from countries that hate us floods into our country with minimal checks and balances.
(11/19) It’s also important to note that de minimus entries have been instrumental in the influx of fentanyl into our country. Fentanyl overdoses are one of the largest causes of death of American young people.
(12/19) 3. They decrease potential US tax revenue. Because under this structure, importers can forgo traditional import duties, the US misses out on billions of dollars in potential revenue while the US simultaneously increases taxes on American citizens to make up for the gap.
(13/19) 4. They support the "Forced Labor and unethical Production" market. Many de minimus entries come from countries with little to no labor regulations. China has a long track record of producing products using illegal and forced labor.
(14/19) Yet, under this system, these products enter the US market freely, and without proper customs checks, the US cannot adequately enforce labor and human rights laws on these imports.
(15/19) 5. They create enormous National Security Risks. Because these shipments bypass customs screenings, they pose a serious risk of drug smuggling, counterfeit currency, and even biological threats to the American homeland.
(16/19) 6. They create an environment where American Manufacturers and companies trying to protect our American workforce get screwed.
(17/19) U.S. companies producing the same goods as our foreign counterparts must pay import duties on raw materials, but foreign competitors skip these costs entirely. This forces U.S. manufacturers and retailers to either lower their prices (hurting profit margins) or shut down
(18/19) “Free trade” as it's currently constituted has long been a mirage that has harmed Americans, sold out our country, and pushed our jobs overseas.
(19/19) It’s a wonderful step forward for the American people to see this system finally get the reform it’s needed for a long time. It finally feels like we're starting to win again 🇺🇸
• • •
Missing some Tweet in this thread? You can try to
force a refresh
