Michigan auto parts company sues White House, challenges U.S. "de minimis" exemption pause
A Michigan auto parts company that is eligible to request refunds for tariffs deemed illegal is taking on the White House in a lawsuit, challenging an executive order that suspends duty-free shipping.
When the Supreme Court ruled in February that President Trump didn't have the authority to impose certain tariffs, it didn't address the "de minimis" exemption, which allowed goods valued at less than $800 to ship duty-free. It's why Mike Musheinesh, the CEO of Detroit Axle, is moving forward with his lawsuit.
Musheinesh runs Detroit Axle, a large auto parts retailer out of his warehouse on Eight Mile Road in Ferndale, but his company also relies on overseas manufacturers for many of the auto parts it sells. It's something he says his company does because they used to take advantage of the de minimis exemption.
"That's why we did the de minimis and opened up operations in Mexico to try in every way to keep the costs low ... any way we're able to save the consumer," said Musheinesh.
But in the summer of 2025, the Trump administration eliminated the de minimis exemption. Without the exemption, the company says its imports are now subject to tariffs as high as 52.5%.
"You import a million dollars' worth of product, you pay the federal government $725,000 in tariffs, and after they found the Ieepa not to be constitutional, they removed 20%," said Musheinesh.
On the same day the Supreme Court issued its decision, Mr. Trump signed a new executive order directing the U.S. Customs and Border Protection to continue suspending duty-free treatment for shipments. The president initially signed an executive order suspending the de minimis exemption in 2025.
"When the election was over in '24, I knew we were going to be in some big, turbulent times," Musheinesh said.
Even though Musheinesh says he should be getting some money back from the recent high court decision on Trump's tariffs, his lawsuit will proceed in the Court of International Trade, focusing on the de minimis exemption.
CBS News Detroit reached out to the White House for comment on the lawsuit, but has not yet heard back. President Trump, however, has consistently expressed his disdain for the court's decision, saying, "The Supreme Court gave us a very unfortunate, foolish ruling, a ruling that gives the people that have ripped off our country for many years, gives them some money back."
Musheinesh also tells CBS Detroit that once he's able to get some money back from the government, he will do what he can to put the money back into more employees and manufacturing right here in Metro Detroit.
