- A federal trade court upheld President Trump's elimination of the de minimis exemption, which allowed goods valued under $800 to be imported to the U.S. tax-free.
- Trump celebrated the ruling in a Truth Social post, calling it a 'BIG WIN' over what he described as a 'DESPICABLE loophole' in American trade policy.
- The U.S. Court of International Trade ruled that the statute allows Trump to scrap the de minimis exemption, rejecting a lawsuit from Detroit Axle.
- Detroit Axle sued the Trump administration in May 2025, arguing that Trump lacked authority under the International Emergency Economic Powers Act (IEEPA).
- The Coalition for a Prosperous America (CPA) applauded the ruling, stating that the loophole is closed lawfully and is not coming back.
- The de minimis exemption allowed foreign shippers to send packages valued at up to $800 into the United States duty-free, leading to significant exploitation in the retail industry.
- Trump claimed that the loophole cost the U.S. billions in uncollected import-tax revenue and was exploited by criminals to ship illegal products.
- CBP has made the suspension of the de minimis exemption, and Congress has enacted a statutory repeal taking effect in 2027.
A federal trade court's ruling on Thursday upheld President Trump's decision to eliminate the 'de minimis' loophole, which allowed goods valued under $800 to enter the U.S. duty-free.1
The court found that Trump acted within his authority under the International Emergency Economic Powers Act (IEEPA).
In a statement, Trump called the ruling a 'BIG WIN' against a 'DESPICABLE loophole' that had been exploited by e-commerce giants like Shein and Temu.
He claimed it had facilitated the importation of illegal goods, including drugs.
Trump stated, 'With the stroke of my mighty pen — NO AUTOPEN!!! — we ended this ridiculous giveaway.'
The ruling was celebrated by the Coalition for a Prosperous America (CPA), which argued that the loophole had led to a surge in uninspected packages entering the U.S., contributing to a rise in counterfeit goods and fentanyl precursors.5
Jon Toomey, President of CPA, emphasized that the court's decision confirmed the President's lawful action, stating, 'De minimis was a billion-package-a-year backdoor around America’s tariffs.'
He added, 'No more litigation, no more lobbying campaigns to sneak the loophole back open.'
The ruling aligns with previous actions taken by Congress and Customs and Border Protection (CBP) to close the loophole, which is set to be officially repealed in 2027.
CPA urges the administration to ensure that former de minimis shippers do not resort to other evasion tactics.
The era of the de minimis free-for-all is over, and it should remain that way.
“The ruling rejected a lawsuit by Detroit Axle, which had argued Trump lacked authority under IEEPA. The Coalition for a Prosperous America praised the decision, noting that Congress has enacted a statutory repeal taking effect in 2027, aligning all branches of government.”
CNBC
