$1 billion in de minimis tariff revenue has been collected since loophole closed

(CNN) — The US government has collected $1 billion in de minimis tariff revenue since rolling back the exemption on low-value packages this spring, according to new data that Customs and Border Protection shared exclusively with CNN.

The exemption applied to goods worth less than $800 and contributed to the proliferation of American shoppers on Chinese e-commerce sites like Temu, Shein and Alibaba. But CBP data suggests that with those duties now in place, Americans have trimmed their purchases.

President Donald Trump initially closed the loophole for goods from China and Hong Kong in May and later applied it to all countries’ exports below $800. Trump argued that it would not only help the government raise tariff revenue but that it would also stop drugs and other illicit goods from entering the country, given the packages would be subject to more rigorous inspections by CBP.

Since the loophole was closed on goods from China and Hong Kong, “seizures of unsafe and non-compliant low-value goods have increased by 82%. These included counterfeits, narcotics, faulty electronics, and goods containing hazardous chemicals,” CBP said in a statement shared with CNN.

Before the de minimis loophole was closed, CBP said an average of 4 million packages a day came through customs. But in late August, before the exemption went into effect for all countries’ goods and was just applicable to China and Hong Kong, CBP said an average of 1 million packages a day entered the country.

The tariff rates range from 10% to 50%, depending on their country of origin. (In certain cases, there is flat fee of $80 to $200 instead, but that expires in February.)

SCOTUS decision hanging over

While the US government has certainly raised more revenue by closing the loophole, the change has created headaches for large and small businesses as well as individual American consumers, who often aren’t aware that they’ll be responsible for paying these duties in instances where the shipper doesn’t include them in the price of the goods.

The shift has likely been felt most acutely by low-income households, who have increasingly been struggling to afford necessities. About 48% of de minimis packages were shipped to America’s poorest zip codes, while 22% were delivered to the richest ones, according to research in February from UCLA and Yale economists.

However, in closing the loophole, Trump cited the International Emergency Economic Powers Act, a law he’s used to impose the bulk of new tariffs during his second term.

His ability to impose tariffs in that way could soon be reined in, with the Supreme Court set to issue a verdict by early next year on whether he holds such authority. If the court rules against him, it could result in importers, including individual American consumers who’ve paid duties on low-value packages, receiving refunds.

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