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[BUSINESS] · United States · 9 sources

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US Court upholds duties on small packages under $800

The US Court of International Trade has upheld an executive order allowing customs duties to be applied to small packages previously exempt under the 'de minimis' regime. This ruling validates President Donald Trump's decision to suspend the exemption for shipments valued under $800.

Previously, the de minimis rule allowed such shipments to enter the country without duties, taxes, or rigorous inspections. Under the new ruling, only private, good-faith gifts valued at less than $100 will continue to qualify for the exemption.

Importers had challenged the order, arguing that the authority to set tariffs belongs to Congress rather than the president. However, the court ruled that the exemption is a 'privilege' rather than a right, making the president's action legitimate.

President Trump characterized the ruling as a victory against a trade loophole, stating that the previous rules were exploited by foreign sellers and used by criminals to smuggle fentanyl and counterfeit goods. He noted that the de minimis rule cost the US approximately $10.8 billion in lost revenue in 2024.

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Donald Trump · US Court of International Trade

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