US trade court upholds Trump's end of de minimis tariff exemption

· Business USA

A U.S. trade court has ruled that President Donald Trump acted lawfully when he ended the century-old de minimis tariff exemption for small packages valued under $800, handing the administration a significant trade policy victory.

The U.S. Court of International Trade dismissed a challenge brought by an importer against the executive orders Trump signed last year suspending the exemption. The judges determined that the de minimis waiver constitutes a "privilege" rather than a right, and that the president acted within his authority. Tariffs on such shipments now range between 10% and 12.5% depending on the country of origin. Only bona fide private gifts under $100 remain exempt.

Trump welcomed the ruling, citing a claim that the exemption cost the U.S. roughly $10.8 billion in uncollected customs revenue in 2024. The decision follows a Supreme Court ruling in February that found Trump's broader global tariffs unlawful.

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