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[BUSINESS] · United States, China, Mexico, Canada · 37 sources

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U.S. Court upholds Trump's authority to end de minimis tariff exemption

The U.S. Court of International Trade has ruled in favor of President Donald Trump, upholding his authority to rescind the de minimis tariff exemption for low-value imports. The court determined that under the International Emergency Economic Powers Act (IEEPA), the president has the power to revoke trade-related privileges, such as the exemption that previously allowed shipments valued under $800 to enter the U.S. without duties or rigorous inspections.

The ruling rejects a legal challenge from Detroit Axle, a Michigan-based auto parts importer, which argued that the president lacked the independent authority to close the exemption before new legislation took effect. The court found that the de minimis provision constitutes a privilege rather than a right.

President Trump described the decision as a “big win” against a loophole he claims has been exploited by criminals to smuggle fentanyl and counterfeit goods. He noted that the exemption resulted in an estimated $10.8 billion in lost U.S. tariff revenue in 2024. Under the current changes, only private, good-faith gifts valued under $100 remain eligible for the exemption.

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Detroit Axle · Donald Trump · International Emergency Economic Powers Act · Shein · Temu · U.S. Court of International Trade · US Court of International Trade · United States · United States Court of International Trade

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