While the past year has kept Americans focused on a historic election, Congress has quietly been considering changes to a critical rule that protects small businesses across the nation. Hispanic-owned businesses are especially vulnerable to losing vital support that has helped them thrive.
Contributing an estimated $800 billion annually to the U.S. economy, these businesses — from online boutiques to neighborhood stores — depend on affordable, accessible imports to remain competitive. However, proposals to limit the De Minimis rule, which streamlines imports valued under $800, now threaten to upend this essential advantage. Protecting De Minimis is critical if lawmakers want to support these businesses and the communities they uplift.
For years, the De Minimis rule has shielded small businesses from excessive costs and red tape. By allowing goods under $800 to enter the U.S. free from customs fees and paperwork, it keeps costs down and makes it possible for small businesses to deliver affordable goods to customers. This rule provides all small enterprises — a fighting chance against large retailers with vast resources.
The importance of the De Minimis rule becomes even more pronounced for Hispanic entrepreneurs, who are launching businesses at a rate three times the national average yet often face narrower profit margins and limited access to capital. This rule allows many Hispanic business owners to keep prices affordable and maintain a steady inventory, leveling the playing field and enabling them to thrive despite challenges. Losing this rule could saddle them with costs that stall growth—or worse, lead to closures.
Small businesses are not just economic drivers but foundational to Hispanic communities, creating local jobs and reinvesting profits locally. According to the U.S. Small Business Administration, Hispanic-owned small businesses support nearly 3 million jobs. The De Minimis rule plays a part in sustaining this ecosystem, making it possible for businesses to serve customers who rely on affordable goods.
Eliminating De Minimis could cost American businesses and consumers up to $30 billion annually. For Hispanic businesses, already managing inflation and supply chain challenges, this would be devastating. These added costs wouldn’t just affect business owners; they would hit consumers who need affordable options to stretch their budgets in tough times.
Data from a Yale study shows that dismantling the De Minimis rule would disproportionately impact lower-income neighborhoods, where studies show that added costs would hit the hardest. For Hispanic-owned businesses in these communities, the outcome could mean fewer sales and diminished community engagement.
As D.C. enters a new chapter, it’s essential to recognize that supporting Hispanic-owned businesses transcends partisan divides; it’s a commitment to bolstering small businesses and energizing our economy. Hispanic entrepreneurs contribute far more than economic value—they bring resilience, creativity, and a strong community spirit that keeps our economy vibrant. Congress has a responsibility to safeguard this vitality by upholding policies like the De Minimis rule, ensuring that small businesses can continue to thrive and grow.
Lawmakers should recognize that De Minimis is not just an obscure trade rule; it’s a gateway to opportunity, innovation, and community empowerment for Hispanic entrepreneurs and the many others who depend on it. Removing it would weaken our economy at a time when small businesses need support more than ever.
The message to Congress is clear: Protect De Minimis. Keep small businesses competitive, preserve affordability for consumers, and recognize the invaluable role Hispanic entrepreneurs play in America’s economic story. Similarly, as the Trump administration prepares to reshape American imports, de minimis is a critical tool that should be preserved. The future of countless businesses—and the communities they sustain—depends on it.
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Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC). The United States Hispanic Business Council (USHBC) is a voice for the Hispanic business community. A 501(c)6 non-profit organization, the USHBC focuses on improving access to contracting in the public and private sector, fair representation of Hispanics in business, media, and politics and ensuring Hispanics have a voice in the national dialogue. The USHBC is a nonpartisan organization. Follow @JPalomarez @myushbc.
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