A federal trade court on Thursday upheld President Donald Trump's elimination of the "de minimis" exemption, which allowed goods valued under $800 to be imported to the U.S. tax free.
Trump, a major proponent of tariffs and other forms of protectionism, celebrated the continued closure of the loophole, which he claims has cost the U.S. billions of dollars in uncollected import-tax revenue.
Attorneys for the plaintiff, a Michigan-based auto-parts distributor, did not immediately respond to CNBC's request for comment on the ruling.
The company, Detroit Axle, had sued the Trump administration in May 2025, more than three months after Trump signed an executive order rescinding the de minimis exemption.