THE WHAT? The US Court of International Trade has rejected a challenge to President Donald Trump’s suspension of the de minimis tariff exemption, allowing the administration to continue collecting duties on low-value imports worth US$800 or less.
THE DETAILS The court ruled that the administration had authority under the International Emergency Economic Powers Act to suspend the exemption, distinguishing the measure from Trump’s previous use of the law to impose broader global tariffs. The de minimis exemption had allowed qualifying low-value goods to enter the US without duties, making it particularly important to cross-border e-commerce. Its suspension had already generated more than US$1 billion in duty payments by the end of 2025. Congress has separately voted to permanently eliminate the exemption from 2027, but the court’s decision allows the current suspension to remain in place ahead of that deadline.
THE WHY? The decision has implications for beauty brands, retailers and marketplaces using direct-to-consumer cross-border shipping into the US, particularly businesses that previously relied on de minimis treatment for lower-value orders. Continued tariffs could increase landed costs and encourage international beauty companies to reassess pricing, fulfilment, warehousing and US distribution strategies.
Source: Bloomberg
