The United States Court of International Trade upheld President Donald Trump’s elimination of the “de minimis” exemption, which had allowed foreign shipments worth up to $800 to enter the country duty-free.
Trump celebrated his administration’s efforts to end the longstanding provision for low-value imports, calling it the “most DESPICABLE loopholes” in U.S. trade policy.
The exemption had allowed most commercial shipments valued at $800 or less to enter the United States without ordinary customs duties and through simplified customs procedures. The provision was especially important for foreign online retailers such as Shein and Temu, e-commerce companies known for selling very inexpensive items. The foreign companies have become very popular among American customers for their cheap, direct-to-consumer shipments.
According to U.S. government data, about 73 percent of de minimis packages that entered the United States originated from China in 2024.
In fiscal 2024, 1.36 billion shipments under the de minimis provision arrived in the United States with a declared value of $64.6 billion.
Trump said that the country has lost revenue over the exemption.
“In 2024 alone, de minimis cost America an estimated 10.8 BILLION DOLLRS in foregone TARIFF Revenue, and an astonishing share of narcotics and counterfeit seizures came through the de minimis channel,” Trump wrote on Truth Social.
American retailers and industry groups also opposed the exemption because they believed it gave an unfair advantage to those foreign e-commerce companies and other third-party companies that sold their items on Amazon.
While supporters of the policy say eliminating the exemption treats foreign sellers and American businesses equally and fairly, critics argue that the change increases costs and paperwork for consumers and businesses that rely on international e-commerce.
Detroit Axle had sued the Trump administration more than three months after Trump signed that executive order rescinding the de minimis exemption.
The end of the de minimis provision likely means that qualifying imports can face duties and additional customs-entry requirements, likely resulting in higher costs for consumers.