Trump wins legal battle to keep cheap imports subject to tariffs
A federal trade court ruled Thursday that President Trump can block cheap imports, including from Chinese retailers Temu and Shein, from entering the U.S. tariff-free.
The ruling is a win for Trump’s trade agenda after a major legal setback forced his administration to find new avenues for imposing sweeping tariffs. The Court of International Trade said Trump’s suspension of the so-called de minimis exemption can continue. The exemption allowed packages worth $800 or less to enter the U.S. tariff-free.
Trump celebrated the ruling on Truth Social, calling the exemption a loophole exploited by tariff cheats, fentanyl traffickers, counterfeiters and other criminals. The suspension brought in about $1 billion in duties in 2025, according to U.S. Customs and Border Protection.
Congress created the exemption in 1938 to avoid the cost of collecting duties on low-value shipments. Its use surged with e-commerce. Trump officials have framed the crackdown as a public safety measure, first suspending de minimis treatment for China and Hong Kong before expanding it globally.
The administration used the International Emergency Economic Powers Act (IEEPA), despite the Supreme Court ruling earlier this year that IEEPA could not be used to impose tariffs. That ruling did not address whether the law could be used to cancel the de minimis exemption.
In a unanimous ruling, the three-judge panel said IEEPA allows the president to cancel certain “privileges,” and the de minimis law describes duty-free treatment as a privilege.
The ruling largely determines whether Trump can keep the exemption suspended until Congress’s permanent repeal takes effect next July.
Ending de minimis has disrupted the business model behind Temu and Shein’s ultra-cheap U.S. sales, raising costs and forcing some supply-chain changes. Europe is also eliminating its own exemption for cheap imports.
