There is the law of unintended consequences. Other countries will now make American small business products much more expensive to export. Why would they give a De Minimis to these small businesses when the USA doesn't reciprocate?
You're only thinking about China and not the rest of the World. US small businesses buy things (under $800) from countries like Canada and the EU, and were able to do so because of De Minimus. Canadians could buy things from US small businesses without worrying about duties as long as it was under $500.
Now even the smallest item, even a gift from abroad worth $20, will incur a duty of $50-$250 plus administrative fees from the carrier.
> Other countries will now make American small business products much more expensive to export.
They already are/were. From EU it never made sense to buy anything from small US business - with the absurd shipping costs and VAT.
If the sending country doesn't collect customs duties for the US, then the US will place a flat fee of $250 on the item regardless of its value.
>From EU it never made sense to buy anything from small US business, with the absurd shipping costs and VAT.
Perhaps in your case, but some products are specialized or of much higher quality than can be found in the USA.
I understand your point that removing it for all is a blunt instrument and causes different problems and harms. Hopefully some policy adjustments are made with some trade offs.
US is the biggest market for everyone, because they have the sweet sweet dollars and that dollar is the global reserve currency. The government is fighting with that to be honest, and they aren't only hostile towards China, but to the whole world. EU amd Canada are actually at the top with China.