Bad Advice on De Minimis Can Do Maximum Damage

(Dresmstime)

By Tuesday, 04 March 2025 09:08 AM EST ET Current | Bio | Archive

Congress frequently relies on reports from federally established commissions to make policy. These commissions do the hard work of research and hearings to make recommendations to federal decision-makers that improve federal policy.

One problem is that sometimes special interests infiltrate these commissions to push their own agenda. And the unintended consequences of following the instructions of a special interest can be embarrassing to policymakers who implement flawed recommendations.

One commission that issued an important report to Congress impacting trade relations and security matters concerning China is the U.S.-China Economic and Security Review Commission (USCC).

The Commission was created to “monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.”

It is an important function of Congress to make sure that actions of the Chinese government are not putting national security at risk.

The problem is that one chapter of the report was written by a textile lobbyist advocating policies that are protectionist and would not protect economic nor national security. The chapter is not a dispassionate analysis of the issue.

Chapter 4, titled, “Unsafe and Unregulated Chinese Consumer Goods: Challenges in Enforcing Import Regulations and Laws” was authored by Kimberly “Kim” T. Glas. Glas was appointed to the commission by Sen. Chuck Schumer, D-N.Y., whose term expired last year.

While serving as a commissioner, she also served as president & CEO of the National Council of Textile Organizations (NCTO) — a clear conflict of interest.

Only in Washington can a person serve on a government commission while being a lobbyist for an industry that is directly impacted by the commission’s work while getting paid by both. Glas’ direct compensation for her work for the NCTO, was $412,333 in 2020 according to the NCTO’s nonprofit filing and was registered to lobby for the organization in 2024 while she served on the commission.

According to publicly disclosed information, Glas was paid $184,115 for her work on the commission. Not only was she pushing a special interest, but she was also drawing a healthy paycheck from both her special interest and a taxpayer-funded Congressionally created commission.

The chapter she wrote of the commission’s report has been criticized by Dan Mitchell of the Center for Freedom and Prosperity and a noted economist.

Mitchell wrote a study titled “U.S.-China Economic and Security Commission Mangled De Minimis Analysis.” In it Mitchell concluded that “serious analysis of issues such as foreign policy and China’s economic slowdown is undermined by sections that promote protectionism.”

The report’s recommendation to impose taxes on small package imports valued under $800 would “severely restrict American consumers from making online purchases from foreign companies, including Chinese firms.” He points out that the approach would be “absurd” and “buying a $50 outfit or $30 toy from a Chinese producer does not affect, much less undermine, America’s national security.”

There are important issues that need to be addressed with small packages imported from China, yet this tariff tax hike on consumers would merely limit choice and hike prices.

One of the unintended consequences of listening to Glas was a Trump administration short-term closing de minimis. The tariff changes did not cause immediate increased costs for middle- and low-income consumers because the closing only lasted a few days.

Closing de minimis clogged our nations’ ports with millions of packages in need of inspection. One great benefit of de minimis that was glossed over in the report is that these small packages are not subject to individual inspection by U.S. Customs and Border Protection (CBP) providing an expected processing system.

Individual inspection of millions of small packages a day is impossible. According to the Congressional Research Service (CRS), over 1 billion packages qualified for expedited shipping in 2023. De minimis provides a benefit to American consumers a quick way to get consumer goods.

According to USA Today, the change to de minimis was lifted “after more than a million packages piled up at New York's John F. Kennedy International Airport.” Following the faulty recommendation of the commission resulted in chaos at our ports.

Most reports from government commissions are sound and based on in-depth research. This one chapter of the commission’s report was not.

If the administration wants to reform de minimis, there are better ways to do it in a way that addresses tariff policy while not effectively blocking all small package imports. The lesson learned is that this administration should not rely on left-leaning special interests to make policy.

Jared Whitley is a longtime politico who has worked in the U.S. Congress, the White House and defense industry. He is an award-winning writer, having won best blogger in the state from the Utah Society of Professional Journalists (2018) and best columnist from Best of the West (2016). He earned his MBA from Hult International Business School in Dubai. Read Jared Whitley's reports — More Here.

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JaredWhitley
The problem is that one chapter of the report was written by a textile lobbyist advocating policies that are protectionist and would not protect economic nor national security. The chapter is not a dispassionate analysis of the issue.
tariffs, trump, de minimis
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2025-08-04
Tuesday, 04 March 2025 09:08 AM
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