Detroit Axle sues over 52.5% tariffs

Detroit Axle is still suing the Trump administration even after the Supreme Court struck down many of the president’s tariffs in February. The company says a separate order still blocks duty-free treatment for low-value imports. (cbsnews.com) (federalregister.gov) The Ferndale auto-parts seller, formally Axle of Dearborn Inc., filed its case in the U.S. Court of International Trade in May 2025. After the Supreme Court’s February 20, 2026 ruling in Learning Resources and V.O.S. Selections, the trade court let Detroit Axle’s paused case move again in March. (supplychaindive.com) (ropesgray.com) The dispute is about “de minimis,” the rule that had let shipments worth less than $800 enter the United States without duties. Detroit Axle says losing that exemption pushed some China-made parts to a 52.5% tariff rate. (cbsnews.com) (supplychaindive.com) Mike Musheinesh, Detroit Axle’s chief executive, told CBS Detroit that importing $1 million of product can mean paying $725,000 in tariffs, and that only 20 percentage points came off after the court ruling. He said the company opened operations in Mexico to keep prices down for customers. (cbsnews.com) Trump answered the Supreme Court loss on the same day with Executive Order 14388, dated February 20, 2026. That order said the suspension of duty-free de minimis treatment would continue even if the IEEPA tariff orders were held invalid. (whitehouse.gov) (federalregister.gov) Detroit Axle argues that ending de minimis by executive order works like imposing a tariff and exceeds presidential power. In a court filing, the company said the continued loss of de minimis could force it to shutter most or all of its business and lay off hundreds of employees. (assets.bwbx.io) (supplychaindive.com) The administration’s position is that the new order rests not only on the International Emergency Economic Powers Act, but also on section 604 of the Trade Act of 1974 and other authorities. Trade lawyers say that leaves the Court of International Trade with a narrower question than the one the Supreme Court decided in February. (federalregister.gov) (barnesrichardson.com) At the same time, U.S. Customs and Border Protection has begun processing refund requests for the IEEPA duties the Supreme Court rejected. CBP says the new CAPE process opened on April 20, 2026 for eligible entries and refund requests authorized by court order or other law. (cbp.gov) That leaves importers in two tracks at once: seeking refunds on tariffs already ruled unlawful while still paying duties on shipments that no longer qualify for de minimis. Detroit Axle’s case is one of the clearest tests of whether the White House can keep that second track alive. (cbp.gov) (cbsnews.com)