President Trump has signed an executive order to maintain the suspension of the de minimis exemption, a decision made despite a recent Supreme Court ruling that invalidated most of his 2025 tariffs. This executive action introduces a 10 percent global tariff and affects the duty-free import of lower-value goods.
Supreme Court Overturns Previous Tariffs
The Supreme Court’s ruling had previously struck down the majority of President Trump’s 2025 tariffs, which had been a significant part of his trade policy. This decision was seen as a major setback for the administration’s economic agenda. For instance, AppleInsider reported that the ‘reciprocal’ tariffs had cost Apple billions, and their removal was expected to benefit consumer electronics.
The New Executive Order and Its Implications
In response to the Supreme Court’s decision, the President issued a new executive order. This order aims to continue the suspension of the de minimis exemption, which previously allowed goods valued up to $800 to be imported duty-free. The new directive imposes a 10 percent global tariff. According to Aaron Rubin, this new executive order is expected to be more robust legally, as it does not rely on the International Emergency Economic Powers Act (IEEPA) for its justification.
Heather Long noted that the de minimis exemption was popular among middle-class and moderate-income Americans who purchased inexpensive items. Its suspension means these consumers will now face the new 10% tariff on such goods.
Industry and Market Reactions
The initial Supreme Court ruling had caused tech stocks to rebound from earlier lows, as the industry anticipated relief from the sweeping global tariffs. However, the new executive order introduces fresh complexities.
- Tech Sector: The tech sector’s initial relief was palpable, with many hoping for a reduction in ‘discrimination’ against the sector abroad. Max Weinbach suggested that the removal of tariffs would benefit consumer electronics by allowing funds to be reallocated from fees to other areas, such as memory costs, without increasing prices.
- Automakers: Detroit automakers, including GM, Ford, and Stellantis, had previously requested the White House to be exempted from new tariffs, highlighting the broad impact of these trade policies across various industries.
- Economic Impact: Forbes raised questions about potential refunds for previously paid tariffs and the implications of the new tariffs on consumer prices. The Budget Lab at Yale provides an overview of the state of U.S. tariffs following these developments.
Despite the Supreme Court’s action, some analysts, like Nitish Pahwa, cautioned that the tariffs might not be as definitively ‘dead’ as some believed, a sentiment reinforced by the President’s swift executive order.
Further Reading
- President Trump signs an EO to continue the suspension of the de minimis exemption (Wired)
- Tech stocks rise after Supreme Court ruling on tariffs (Barron’s Online)
- Supreme Court strikes down most of Trump’s tariffs (NBC News)
- Supreme Court strikes down Trump tariffs, rebuking president’s signature economic policy (CNBC)
- Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries (The White House)
- SCOTUS strikes down Trump tariffs, but ‘alternative’ plans brewing (Cointelegraph)
- Supreme Court Rules Trump Tariffs Illegal, $150B Refund Now on the Table (Blockonomi)
- Supreme Court Kills Trump’s Reciprocal Tariffs. Will Companies Get Reimbursed? (PCMag)
- Supreme Court Rules Against Trump’s Tariffs: These 10 Stocks Are Soaring (Benzinga)
- Supreme Court strikes down Trump tariffs 6-3. Tech stocks rally, but will prices drop? (Mashable)
- Total U.S. Trade Deficit Barely Budged in 2025 (Yahoo Finance)
- Supreme Court Strikes Down Trump Tariffs That Hiked Prices On Switch, Xbox, And PS5 (Kotaku)
- Bitcoin Multi-Year Lifeline Faces Critical Test as Supreme Court Weighs Trump’s Tariffs (BeInCrypto)
- The U.S. Supreme Court ruled against Trump’s tariffs. Will companies get their money back? (Financial Post)
- The Wild Year in Trade, in Charts (Wall Street Journal)
- US trade deficit expands sharply as imports surge (Taipei Times)
- Annual U.S. Goods Deficit Hits a Record (Council on Foreign Relations)
- Ted Lieu on X: Trump’s reaction to SCOTUS ruling
- Ben Brody on X: Tech sector’s response to tariffs ruling
- Ben Bajarin on X: Impact on OEMs
- Ryan Petersen on X: Legal authority for new tariffs
