00:00A U.S. trade court has ruled that President Donald Trump has the authority to end a tariff exemption for
00:06small parcels,
00:07rejecting a legal challenge that argued he lacked the power to do so.
00:11Trump welcomed the ruling on social media and called it a major victory,
00:16saying the exemption had allowed businesses to avoid tariffs.
00:21The legal challenge argued that Trump had lacked the authority to rescind the exception.
00:25However, the U.S. Court of International Trade ruled that this was allowed.
00:30Last year, Trump moved to end the de minimis exemption for parcels worth US$800 or less,
00:36citing concerns over tariff avoidance and drug smuggling through low-value shipments.
00:41The move has raised concerns among small businesses,
00:45with experts warning that smaller firms are less able to absorb higher costs and financial shocks than larger online platforms.
00:52Chinese-founded retailers Shein and Timu were also affected
00:56when Washington previously entered the exemption for goods from China,
01:00a change that increased the cost of low-value imports.
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