Trump reinstates savage 10% tariff that will hit the average American hardest

Though the Supreme Court ruled against Trump's use of the IEEPA to impose tariffs, one aspect of his policy has survived: the ending of the de minimis exemption

Despite the Supreme Court’s tariff ruling Friday, a piece of President Donald Trump’s agenda has survived.

The high court ruled Friday that Trump doesn't have the authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs on trade partners. The act is generally reserved for situations deemed an "extraordinary threat."

Trump's tariff policy has been one of the biggest platforms of his presidency, which has generated roughly $133.51 billion in total revenue in fiscal years 2025 and 2026 through Dec. 14, according to the most recent data from the U.S. Customs and Border Protection. This accounts for more than 60% of total tariff revenue from Trump's trade actions.

One aspect of his policy will continue on: the ending of the de minimis exemption.

What is the de minimis exemption?

The de minimis exemption allowed all imported goods under $800 to be exempt from tariffs and other customs procedures. The rule let businesses that specialize in inexpensive online goods, like Shein and Temu, to thrive.

Courtney Griffin of the Consumer Federation of America said in August that the U.S. saw about 4 million de minimis packages being processed a day.

And according to a press release from Customs and Border Protection, the amount of de minimis shipments into the U.S. grew from 140 million in 2014 to 1.36 billion in 2024.

By ending the de minimis exemption, U.S. imports will be hit with a 10% tariff, no matter the price.

The de minimis threshold was previously $200, but in 2016, it was raised to $800 after the Trade Facilitation and Trade Enforcement Act was signed by President Barack Obama.

The exemption has been controversial for years. Though it paved the way for ecommerce businesses to skyrocket with affordable prices, it also creates further demand for products made in unsafe and even illegal environments to keep prices low.

Under an executive order from Trump last year, the de minimis exemption was suspended for all U.S. imports, citing the IEEPA. And in another executive order signed Friday, the White House ensured the de minimis exemption remained closed the-mirror-icon_money_trade-tariffs.

Does the Supreme Court ruling affect the de minimis exemption?

The Supreme Court ruling didn’t specifically mention 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, court recognized and upheld Article I, Section 8 of the Constitution, which sets the powers of the Legislative Branch, quoting, “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 on in the opinion.

"Accordingly, the President must ‘point to clear congressional authorization’ to justify his extraordinary assertion of the power to impose tariffs," the justice continued. "He cannot."

But de minimis weren’t addressed, meaning for now, the rule can continue.

Trump’s tariff backup plan

Tariffs are not entirely off the table, and Trump immediately invoked a back up plan following the ruling.

In a press conference, Trump said he will impose a 10% tariff across the board under Section 122 of the Trade Act of 1974. He added the administration would use Section 301 to investigate possible unfair trade practices to bring additional tariffs as well.

Then Friday night, the president posted on TruthSocial that those tariffs will be increased to 15%.

Trump wrote that after "a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court," he had decided to raise tariffs by 10%, adding up to 15% total, "effective immediately."