The U.S. Court of International Trade on Thursday sided with President Trump in his decision to end the de minimis tariff exemption, a move that allowed goods valued under $800 to enter the country duty-free. The ruling marks a notable victory for the administration's trade agenda, even as other courts have pushed back on broader tariff actions.
The court found that Trump's invocation of the International Emergency Economic Powers Act (IEEPA) to rescind the exemption was lawful, distinguishing it from the sweeping tariffs the Supreme Court struck down earlier this year. The panel wrote that "allowing the President to rescind the de minimis exemption does not authorize him to impose any tariffs," emphasizing that the president's power to nullify a "privilege" under IEEPA is separate from the authority to levy new duties.
Trump celebrated the decision on Truth Social, calling it a "BIG WIN." He wrote, "With the stroke of my mighty pen — NO AUTOPEN!!! — we ended this ridiculous giveaway, and made Foreign Goods play by the rules. The Importers sued. Today, THEY LOST."
The case was brought by Detroit Axle, a family-run auto-parts distributor, which argued that Trump's suspension of the exemption exceeded his authority under IEEPA. The company's lawsuit drew on the Supreme Court's February ruling that invalidated Trump's global tariffs under the same 1970s-era statute. However, the trade court determined that IEEPA's language—authorizing the president to "nullify" or "void" any "privilege" regarding foreign-owned property—applies to the exemption, which Congress itself has described as a privilege.
The three-judge panel included Gary Katzmann, an Obama appointee; Timothy Reif, a Trump appointee; and Jane Restani, a Reagan appointee. Their unanimous decision is one of the few bright spots for the administration amid a string of legal defeats on tariff policy.
While the ruling is a legal win, its practical impact is limited. Congressional Republicans already codified the end of the de minimis exemption in the One Big Beautiful Bill Act, which will permanently eliminate it starting next July. The trade court is still weighing the legality of Trump's latest tariffs on imports from 60 trading partners, with oral arguments scheduled for September 30.
The decision does not affect the ongoing litigation over those tariffs, which rely on a separate legal authority. As the administration continues to defend its trade policies, this ruling provides a measure of validation for its approach to closing loopholes, even as broader questions about executive power remain unresolved.
