One Trump tariff policy targeting Shein and Temu

Despite Friday’s Supreme Court ruling on tariffs, one factor of President Donald Trump’s agenda stays intact.

The Supreme Court decided on Friday that Trump lacks authority under the International Emergency Economic Powers Act (IEEPA) to levy broad tariffs on trading companions. The act is usually reserved for eventualities thought of an “extraordinary threat.”

Trump’s tariff strategy has been a cornerstone of his presidency, producing roughly $133.51 billion in complete income during fiscal years 2025 and 2026 through Dec. 14, based on the latest figures from U.S. Customs and Border Protection. This represents over 60% of complete tariff income from Trump’s commerce measures.

However, one part of his policy will stay in impact: the elimination of the de minimis exemption.

What is the de minimis exemption?

The de minimis exemption permitted all imported items valued under $800 to keep away from tariffs and other customs processing. This provision enabled corporations specializing in low-cost online merchandise, such as Shein and Temu, to flourish.

Last August, Courtney Griffin from the Consumer Federation of America famous that roughly 4 million de minimis packages have been being processed daily in the U.S.

According to a assertion from Customs and Border Protection, de minimis shipments coming into the U.S. surged from 140 million in 2014 to 1.36 billion in 2024.

With the termination of the de minimis exemption, U.S. imports will face a 10% tariff, regardless of worth.

The de minimis threshold beforehand stood at $200, but was elevated to $800 in 2016 following the signing of the Trade Facilitation and Trade Enforcement Act by President Barack Obama.

The exemption has sparked debate for years. While it enabled ecommerce corporations to thrive by offering aggressive costs, it also fueled demand for items produced in unsafe and even illegal circumstances to preserve low prices.

Through an govt order issued by Trump last yr, the de minimis exemption was suspended for all U.S. imports, invoking the IEEPA. And in another govt order signed Friday, the White House confirmed the de minimis exemption would stay suspended.

Does the Supreme Court ruling have an effect on the de minimis exemption?

The Supreme Court ruling made no particular reference to the de minimis exemption.

Chief Justice John Roberts wrote in the ruling: “Based on two words separated by 16 others in Section 1702(a)(1)(B) of IEEPA – ‘regulate’ and ‘importation’ – the President asserts the independent power to impose tariffs on imports from any country, of any product, at any rate, for any amount of time. Those words cannot bear such weight.”

In the opinion, the court acknowledged and upheld Article I, Section 8 of the Constitution, which establishes the powers of the Legislative Branch, stating: “The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises.

“It is also telling that in IEEPA’s ‘half century of existence,’ no President has invoked the statute to impose any tariffs-let alone tariffs of this magnitude and scope,” Roberts wrote later in the opinion.

“Accordingly, the President must ‘level to clear congressional authorization’ to justify his extraordinary assertion of the facility to impose tariffs,” the justice continued. “He can not.”

However, de minimis provisions were not addressed, meaning for now, the rule remains in place.

Trump’s tariff contingency plan

Tariffs haven’t been completely ruled out, and Trump quickly activated a contingency plan following the court’s decision.

During a press conference, Trump announced he would implement a 10% across-the-board tariff under Section 122 of the Trade Act of 1974. He also stated the administration would utilize Section 301 to examine potential unfair trade practices that could justify additional tariffs.

Then on Friday night, the president announced on TruthSocial that those tariffs would be raised to 15%.

Trump wrote that following “a thorough, detailed, and full review of the ridiculous, poorly written, and terribly anti-American choice on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court,” he had decided to increase tariffs by 10%, bringing the total to 15%, “efficient immediately.”