US de minimis elimination upheld by trade court

An article from US de minimis elimination upheld by trade court The Court of International Trade said President Donald Trump has the authority to rescind the tariff exemption for sub-$800 imports. Published Aug.

14, 2026 Max Garland Lead Reporter Share Copy link Email / Print License Add us on Google President Donald Trump answers questions in the Oval Office of the White House on March 31, 2026, in Washington, D. C. Trump celebrated a ruling made by the Court of International Trade on Thursday upholding his elimination of the de minimis exemption.

Alex Wong via Getty Images Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. The U. S. Court of International Trade has upheld the Trump administration's elimination of the de minimis exemption, shutting down a potential revival of the trade tool once used by low-cost importers.

The de minimis exemption enabled imports of less than $800 to enter the U. S. duty and tax free, which many e-commerce merchants leveraged to ship goods more cost effectively. President Donald Trump ended the exemption last year, citing concerns over de minimis aiding drug trafficking and instances of importers avoiding tariffs.

Axle of Dearborn, which does business as Detroit Axle, aimed to revive the exemption through the court.

The Michigan-based auto parts company argued that the International Emergency Economic Powers Act — the 1977 law which Trump used to impose broad tariffs before the Supreme Court’s February ruling striking them down earlier this year — did not give Trump the authority to eliminate de minimis.

However, a three-judge panel wrote in an opinion issued Thursday that IEEPA authorizes the president's rescission of the de minimis exemption. The panel noted that the president's power to eliminate de minimis "does not reflect the wholesale power to impose tariffs at issue in Learning Resources," referring to the tariffs case the Supreme Court ruled on.

"Instead, by rescinding the de minimis exemption, the President found the existence of an underlying condition—the national emergency—and executed the policy of Congress by taking an action specifically enumerated in IEEPA purportedly to deal with that emergency," the panel wrote.

The panel added that "Axle’s argument that 'eliminating a tariff exemption is functionally identical to imposing a tariff on previously exempted goods' is unavailing." While de minimis' elimination resulted in sub-$800 imports being subject to the same duties as higher-priced items, it didn't impose any new tariffs, per the panel.

Detroit Axle has historically relied on the de minimis exemption to deliver parts from China-based manufacturers to customers at a lower cost. The company said in March that the elimination of the exemption has subjected it to a 52. 5% tariff on China-based auto parts imports.

Trump celebrated the ruling against Detroit Axle in a Truth Social post on Thursday, saying the end of the de minimis exemption makes the country safer, better protects workers and drives more tariff revenue to the U. S. "The Importers sued. Today, THEY LOST.

The Court ruled that the President had the Legal Authority to rescind this so-called 'privilege,'" Trump said. The Coalition for a Prosperous America, a non-profit representing domestic producers standing against the exemption, also applauded the court's ruling and said in a news release Thursday that the decision "should end the debate for good."

Even if Detroit Axle had succeeded in its case and revived de minimis, legislation signed by Trump last year would have resulted in the exemption ending in July 2027. Recommended Reading Full tariff refunds for de minimis imports?

US says no By Max Garland • May 27, 2026 Add us on Google Share Copy link Email / Print License Filed Under: Logistics, Regulation