With the exception of a few outstanding countries listed below in alphabetical order, the attention has now turned to litigation and whether the President has the authority to implement tariffs using the International Emergency Economic Powers Act (IEEPA).
IEEPA: A 7-4 ruling by the US Court of Appeals for the Federal Circuit upheld a lower court’s decision affirming the President exceeded his authority under IEEPA. The case has been handed back to the District Court for review.
Once reviewed, the President must file his appeal with the Supreme Court by October 14th.
No surprise, but there is debate on how the Supreme Court will rule. The opposition questions if trade deficits and fentanyl trafficking rise to the point of “emergency” and asserts tariffs fall strictly with the legislature. The proponents contend there is little precedent on the executive branch’s power to unilaterally implement tariffs and IEEPA’s language is broad enough to allow it.
The tariffs will remain in effect until the Supreme Court has heard and ruled on the case, which isn’t expected until next year. Additionally, only the IEEPA tariffs are under litigation. The Section 232 tariffs on steel, aluminum and automobiles as well as the Section 301 tariffs on China remain in effect and uncontested.
Here’s an update on country and commodity-specific tariff negotiations:
Brazil: President Trump signed an Executive Order in July implementing a 50% tariff on their imports. Brazil’s President is still considering options, including retaliatory tariffs and a World Trade Organization dispute.
Canada: The 35% tariff on non-USMCA goods remains in effect, and Canada removed retaliatory tariffs effective September 1st.
China: The previous 90 day extension holding the tariff on Chinese imports at 30% was renewed for another 90 days. It is now set to expire on November 9th.
De Minimis: The De Minimis exemption, allowing goods valued at $800 or less to come into the US without tariffs or taxes, was sunsetted on August 29th. Small parcels using this exemption grew exponentially over the last decade, from 134 million packages in 2015 to 1.36 billion in 2024. Your orders from on-line retailers like Temu and Shein will now face the same level of tariffs as their country of origin.
India: Although negotiations are on-going, just last week, the US increased tariffs on imports from India to 50%. The increase was a result of India’s continued purchases of Russian oil
Switzerland: At 39%, it is among the highest tariff rate of any industrialized nation. Think chocolate, pharmaceuticals, watches, and machinery. The Administration contends the Swiss are not doing enough to reduce trade barriers for US goods.
Furniture: In a social media post late last month, President Trump said his Administration had opened a 50-day investigation into furniture imports. The investigation is expected to result in a tariff as the post stated furniture will be “Tariffed at a Rate yet to be determined.”