US court rules Trump can end tariff exemption for small parcels

A US trade court has ruled that President Donald Trump can end a tariff exemption for small parcels entering the country, dismissing a challenge to his recent move. Trump took action last year to discontinue the de minimis exemption for shipments valued at $800 or less, arguing that the small packages were being used to circumvent tariffs and smuggle drugs.

This decision has raised concerns among small businesses, which have fewer resources to absorb such shocks compared to larger platforms like Chinese-based e-commerce companies Shein and Temu. Despite the legal challenge arguing that Trump lacked the authority to revoke the exemption, the US Court of International Trade deemed his action permissible.

President Trump celebrated the "big win" on social media, stating that the provision had become a significant loophole for tariff evaders. While Trump's overall tariff agenda has faced multiple legal challenges since his return to the White House last year, his sector-specific tariffs have remained unaffected.