President Donald Trump announced on August 13 that the U.S. Court of International Trade ruled in favor of his administration's closure of the de minimis exemption, a loophole that allowed foreign shippers to send packages worth up to $800 into the United States duty-free with minimal scrutiny.
In a statement on X, Trump said the loophole had become a “pipeline exploited by Fentanyl Traffickers, Counterfeiters, and other Criminals” and cost the U.S. an estimated $10.8 billion in foregone tariff revenue in 2024 alone. The administration rescinded the exemption by executive action, prompting a lawsuit from importers.
“The Court ruled that the President had the Legal Authority to rescind this so-called ‘privilege,’” Trump wrote. “America is now SAFER, our Workers are better protected, and BILLIONS in TARIFF Revenue that used to slip through this loophole can instead help pay for our Great Military, Tax Relief, NO TAX ON TIPS, and NO TAX ON SOCIAL SECURITY.”
