
Immigration & Border Control
What is the Presidential Action?
The President has amended Executive Order 14194, initially aimed at managing duties related to the U.S. Southern Border. The amendment specifically revises the duty-free de minimis treatment for certain covered articles, which will cease once adequate tariff revenue processing systems are established. This action modifies how goods entering the U.S. under certain conditions are treated for tariff purposes.
Background or Context with Statistics and Source References
Originally, Executive Order 14194 was enacted to manage economic and security issues at the Southern Border by imposing specific duties. These duties were part of a broader strategy to regulate trade and enhance border security. The de minimis provision allows low-value shipments to enter the U.S. duty-free, intended to streamline commerce and reduce administrative burdens. However, concerns about revenue loss and border security have prompted a reevaluation of this policy.
Why This Action Was Taken
The amendment was introduced following reports from the Commerce Department indicating that the existing systems were inadequate for managing and collecting tariffs efficiently. Stakeholders, including trade regulators and national security advisors, supported this amendment to ensure that economic benefits do not compromise border security and revenue needs.
Short and Long-Term Impact on People
In the short term, businesses relying on duty-free imports under the de minimis rule may face increased costs, affecting pricing and supply chains. Long-term, the amendment aims to enhance tariff revenue and border security, potentially leading to more robust economic and security frameworks. Consumers might see adjustments in product prices as businesses recalibrate their import strategies.
Performance/Impact Parameters to Measure Success
Success will be measured by the increase in tariff revenues and the effectiveness of the new systems in processing and collecting these revenues. Additionally, improvements in border security metrics and reductions in unauthorized trade activities will also serve as key indicators of the amendment’s impact.
Constitutional Validity and Legal Precedents
The amendment stands on solid legal ground, derived from powers granted by the International Emergency Economic Powers Act, the National Emergencies Act, and other relevant statutes. Previous executive actions under these laws provide a strong precedent for modifying trade regulations in response to economic and security challenges, supporting the constitutional validity of this order. Content: Title: Amendment to Duties to Address the Situation at our Southern Border Summary: By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order: Section 1. Amendment. Executive Order 14194 of February 1, 2025 (Imposing Duties to Address the Situation at Our Southern Border), as amended by Executive Order 14198 of February 3, 2025 (Progress on the Situation at Our Southern Border), is further amended by revising section 2(g) to read as follows: “(g) Duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in subsection (a) of this section. Such duty-free de minimis treatment shall cease to be available for such otherwise eligible covered articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expeditiously process and collect tariff revenue applicable pursuant to subsection (a) of this section for covered articles otherwise eligible for de minimis treatment.”Sec. 2. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department, agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations. (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.THE WHITE HOUSE, March 2, 2025. URL: https://www.whitehouse.gov/presidential-actions/2025/03/amendment-to-duties-to-address-the-situation-at-our-southern-border/