Economic researchers from Yale and UCLA have conducted a two-year study of de minimis shipments that has generated interesting results regarding how these shipments benefit lower income consumers. The study found that eliminating de minimis would:
- Impact hardest on lower-income communities which spend 74% of direct purchase funds on de minimis imports – the percentage is 52% for higher-income communities
- Reduce aggregate welfare by $10.6 – $14.8 billion, with this loss disproportionately hurting lower-income and minority consumers
- Cause lowest-income communities to face a new 12.1% tariff, while higher-income communities would incur only a 6.7% tariff – the new tariffs would be regressive
- Raise cost of living disproportionately more for minority households
The study concluded 321 shipments function as a pro-poor trade policy – the average tariff on direct shipments to lowest-income communities of 0.5% is one-third of the average tariff to richest communities of 1.5%.
