De Minimis Tariff Refunds: U.S. Government Says No
- 6 days ago
- 1 min read
Detroit Axle is suing to recover ~$44M in tariff refunds, arguing the suspension of the de minimis exemption was unlawful under IEEPA. The DOJ fired back, saying the suspension didn't create new tariffs — it just removed a workaround for existing ones — and that Detroit Axle's duty exposure was a result of its own business decisions. The case is before the Court of International Trade; de minimis is set to expire by law in July 2027 regardless of outcome.
De minimis ($800 threshold) has been suspended since August 2025 and is legislatively set to end July 2027.
Tariff refunds tied to de minimis are a separate — and more contested — track from IEEPA refunds currently flowing to many importers.
The DOJ's position: removing an exemption is not the same as imposing a tariff, limiting the refund argument's legal footing.
Importers relying on de minimis for cross-border, direct-to-consumer fulfillment should continue planning around its permanent absence.
Source: Supply Chain Dive, May 27, 2026 | Read full article
