Trump wins legal battle to keep cheap imports subject to tariffs
Summary
A federal court ruled that President Trump can keep blocking cheap imports valued at $800 or less from entering the U.S. without tariffs. This decision allows the continuation of Trump’s suspension of the "de minimis" exemption, which stopped many inexpensive shipments from avoiding tariffs, especially from Chinese retailers like Temu and Shein.Key Facts
- The Court of International Trade decided that President Trump can continue suspending the de minimis exemption.
- The de minimis exemption allowed packages worth $800 or less to enter the U.S. without tariffs.
- Trump’s suspension of this exemption aimed to stop tariff loopholes used by some foreign sellers and to improve public safety.
- U.S. Customs and Border Protection said suspending the exemption brought in about $1 billion in duties in 2025.
- Congress passed a law to permanently end the de minimis exemption by July 2025.
- The exemption was created in 1938 to avoid collecting duties on low-cost packages, but it became more widely used with the rise of online shopping.
- The policy initially targeted shipments from China and Hong Kong before expanding globally.
- Europe is also ending its own exemption for cheap imported packages, showing a global trend.
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