US court rules Trump can end tariff exemption for small parcels

WASHINGTON - A trade court ruled on Aug 13 that President Donald Trump could halt a tariff exemption for small packages entering the country, rejecting a challenge to the US leader’s earlier move.

Trump had acted last year to end the “de minimis” exemption for parcels valued at US$800 (S$1024.64) or less, citing the use of low-value shipments to avoid tariffs and smuggle drugs.

This had sparked concern from small businesses, which experts said have less buffer to absorb shocks, unlike larger consumer platforms like Chinese-founded Shein and Temu. Both were hit when Washington previously closed the exception for Chinese products.

While the legal challenge argued that Trump had lacked the authority to rescind the exception, the US Court of International Trade ruled that this was allowed.

Trump touted the “big win” in a social media post, saying the provision “became a giant loophole for tariff cheats” and others.

The US leader’s tariff agenda has faced a series of legal pushbacks since he imposed sweeping duties on trading partners after returning to the White House last year.

In February, the Supreme Court ruled against his global tariffs, finding that he exceeded his authority in introducing them while dealing a sharp blow to his ability to impose duties at will.

Trump’s sector-specific tariffs were unaffected by the high court ruling, and he has since tapped different authorities to roll out new duties. AFP