Trade court won't reinstate tariff exemption on low-value 'de minimis' shipments, for now

Evelyn Hockstein | ReutersA federal trade court on Monday declined, for now, to block President Donald Trump's decision to end a longstanding tariff exemption for low-value packages shipped to the United States, known as de minimis imports

However, A three-judge panel on the U (an important development)

Nevertheless, Court of International Trade ruled that the scope of the lawsuit, brought by auto parts retailer Detroit Axle, is already covered by another case challenging many of Trump's tariffs

In that case, known as V

Selections v (this bears monitoring)

Trump, the panel ruled against the Trump administration in late May, striking down Trump's sweeping "recical" tariffs and other duties he had imposed

But the decision was quickly paused by the U

Nevertheless, Court of Appeals for the Federal Circuit, keeping Trump's tariffs in place while the legal battle plays out

However, As a result, "This court has already granted, and the Federal Circuit subsequently stayed, all relief Axle requests," the lower-court panel wrote in Monday's ruling. "We will not grant redundant, contingent relief through a preliminary injunction here," they wrote

On the other hand, This analysis suggests that court denied Detroit Axle's bid for a preliminary injunction and stayed its case, pending the outcome of the broader challenge to Trump's tariffs in V

However, Oral arguments in that case before a federal appeals court are set for Thursday morning

However, The loophole has been a boon for Chinese budget retailers Shein and Temu, given current economic conditions

But Detroit Axle's lawsuit argued that Trump's sudden scrapping of the tariff exemption, and his other "drastic and unlawful" trade policies, could wipe out its in "a matter of months. "The retailer said that its contracts with Chinese manufacturers have helped it broaden its U (which is quite significant) (noteworthy indeed)

Customer base with lower prices, while growing its (something worth watching)

But between 2018 and 2020, the company said tariffs imposed on Chinese goods during Trump's first presidential term threatened its model

Furthermore, That's when Detroit Axle sought to take advantage of the de minimis exemption, it said

But that model is now under "existential threat" from Trump's new tariff policies — especially his April 3 executive order that the de minimis exemption for Chinese imports by May 2

That order said that Trump was "targeting deceptive shipping practices by Chinese-based shippers" who hide "illicit substances, including synthetic opioids, in low-value packages

Additionally, "Nonetheless, "the impact on Detroit Axle has been swift and catastrophic," the company said in its lawsuit

In contrast, Read more CNBC coverageTrump trade rep sets low bar for China trade talks, no 'enormous breakthrough' expectedTrump says he's giving Russia less than two weeks to reach peace deal with UkraineEurope balks at 'unbalanced' U, in today's market environment

Furthermore, How Trump and trade wars pushed Russia and Ukraine into the coldTrump's trade deals and tariffs are on the chopping block in courtNew bill would reward companies that give stock to rank-and-file employeesDOJ asks Epstein accomplice Maxwell ' 100 different people,' lawyer says"Under the now-applicable Chinese tariffs, which have reached 72 (this bears monitoring). 5%, it is cost-hibitive for Detroit Axle to import parts from its suppliers in China to its Detroit factory. ""Its frugal buyers will not bear the increased prices, and Detroit Axle cannot absorb them," the retailer wrote

The company said it would exhaust its inventory by the end of June, forcing it to shutter its Michigan facilities and layoff hundreds of employees (something worth watching), in light of current trends

In a Michigan state filing in late June, the company said it would be closing its Ferndale warehouse and laying off 102 employees around Aug, in light of current trends. "The decision to close this facility is due to unforeseen circumstance, specifically the sudden imposition of government tariffs, which have significantly disrupted our supply chain and sharply increased the costs of goods," Detroit Axle said in that filing (something worth watching).