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[BUSINESS] · United States, China, Mexico, Canada · 12 sources

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US Court upholds Trump's authority to end de minimis tariff exemption

The US Court of International Trade has ruled that President Donald Trump possesses the legal authority to rescind the “de minimis” tariff exemption for low-value imports. The court found that the International Emergency Economic Powers Act (IEEPA) allows the president to revoke trade-related “privileges,” such as the exemption for shipments valued at $800 or less.

The ruling rejects a legal challenge from Michigan-based auto parts importer Detroit Axle, which argued the president lacked independent authority to end the provision before new legislation took effect. The exemption had previously allowed a massive volume of goods—including approximately 73 percent from China in 2024—to enter the US duty-free and with minimal scrutiny.

President Trump described the decision as a “big win,” asserting that the exemption served as a “giant loophole” for tariff evasion and a channel for smuggling fentanyl and counterfeit goods. He noted that the exemption resulted in an estimated $10.8 billion in lost tariff revenue in 2024 alone. While the ruling provides a victory for the administration's trade agenda, the policy impacts major e-commerce platforms like Shein and Temu that rely on direct-to-consumer, low-value shipments.

Entities

Detroit Axle · Donald Trump · Shein · Temu · US Court of International Trade · United States Court of International Trade

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