The US Court of International Trade backed Trump's use of emergency powers to close the de minimis tariff exemption on imports under USD 800 from China, Mexico, and Canada, finding he had authority under the International Emergency Economic Powers Act to rescind the privilege.
The US Court of International Trade issued a ruling on 13 August 2025 that sided with the Trump administration’s decision to eliminate the “de minimis” tariff exemption for small-value imports below USD 800.
The three-judge panel found that the International Emergency Economic Powers Act (IEEPA) provided the president with sufficient authority to rescind this long-standing tariff privilege, even though the same statute could not justify imposing entirely new tariffs.
The Trump administration had moved to close the exemption through executive action in February 2025, targeting imports from China, Mexico, and Canada as part of a broader tariff initiative. That same month, the president issued sweeping tariff increases on goods from these three countries.
The February tariffs faced immediate legal challenges and were struck down by the US Supreme Court earlier in 2025, but the justices’ decision did not address the de minimis exemption closure.
Congress and the business community’s response
The Republican-controlled Congress formally closed the de minimis exemption by incorporating the measure into the 2025 omnibus tax-and-spending bill. However, the legislation included a delayed implementation date, keeping the exemption operational through July 2027. This phased approach meant the administration’s executive closure of the exemption occurred before statutory abolition would have taken effect.
The broader tariff picture
The Court of International Trade’s decision marks a rare judicial success for Trump’s tariff agenda. The administration’s wider tariff strategy has faced consistent courtroom defeats.
The Supreme Court ruled against the February 2025 tariffs on 20 February, determining that IEEPA does not authorise unilateral presidential tariff imposition on specific trading partners. Subsequently, the Court of International Trade also struck down a temporary replacement tariff regime that Trump introduced after the Supreme Court’s ruling.
The administration proceeded to a third legal approach, now claiming authority to impose tariffs on more than 99% of all imports. Multiple lawsuits from US states and small businesses have already challenged these duties in court. The de minimis exemption ruling, therefore, stands as one of the few successful defences of Trump’s emergency economic powers in judicial proceedings, despite the broader pattern of setbacks across his tariff initiatives.
Earlier, President Trump signed an executive order on 30 July 2025 suspending duty-free de minimis treatment for low-value shipments valued at USD 800 or less from all countries, effective 29 August 2025.
