A court has ruled that the Donald Trump administration can maintain the tariffs it has imposed on “small parcels” valued at $800 or less. On the 13th, the U.S. Court of International Trade ruled against a U.S. auto parts importer in a lawsuit demanding the reinstatement of duty-free exemptions, claiming the administration’s suspension of the exemption illegally infringed upon legislative authority. The court determined that the administration’s action fell within the scope of presidential authority permitted under the International Emergency Economic Powers Act (IEEPA).
Consequently, the executive order abolishing the “duty-free de minimis treatment” based on the IEEPA will remain in effect. The court determined that the previously implemented duty exemption for imported products valued at $800 or less constituted a form of preferential treatment, differing in nature from the IEEPA-based reciprocal tariffs that the Supreme Court had deemed illegal.