Trade court upholds Trump's closure of 'de minimis' loophole

Key Points:

• A federal trade court upheld President Donald Trump's elimination of the "de minimis" exemption, which previously allowed goods valued under $800 to be imported into the U.S. tax-free.
• The exemption was widely used by e-commerce companies to avoid tariffs, particularly through shipments from Chinese manufacturers and cross-border warehouses in Canada and Mexico.
• The plaintiff, Detroit Axle, challenged the rescission under the International Emergency Economic Powers Act (IEEPA), but the court ruled that the president has the authority to remove the exemption without violating separation of powers.
• The court distinguished this case from the Supreme Court's rejection of Trump's global tariffs, stating that scrapping the duty-free loophole is not a legislative or budgetary power requiring congressional approval.
• Trump hailed the ruling as a major victory against tariff evasion and illegal imports, emphasizing the closure of what he called a "despicable loophole" exploited by criminals and companies alike.