US court rules Trump can end tariff exemption for small parcels

The US Court of International Trade has ruled that President Donald Trump has the authority to end a tariff exemption for small packages valued at $800 or less entering the country. This decision overturns a challenge to Trump's previous action, which was implemented last year amid concerns that low-value shipments were being used to circumvent tariffs and potentially smuggle drugs.

Small businesses, particularly those lacking the financial buffer to absorb tariff shocks, were more vulnerable to the changes than larger platforms like Chinese e-commerce sites Shein and Temu. While the legal dispute argued that Trump lacked the authority to rescind the exception, the court concluded that he was within his rights to do so.

President Trump celebrated the ruling on social media, labelling the provision as a "giant loophole for tariff cheats." The White House's broader tariff strategy, which faced several legal obstacles following his return to office last year, remains intact. Notably, the Supreme Court previously struck down Trump's global tariffs in February, limiting his ability to impose duties unilaterally.