Tariff activity is difficult to keep track of as it changes constantly. Below is a recap of what transpired last month.
On May 12th, tariffs between China and the US were temporarily slashed from 125% to 10%. For cargo from China to the US, this decrease put tariffs at 30%, including the existing 20% tariff for China’s involvement in the fentanyl trade. These reductions are scheduled to be in place for 90 days, until August 14th.
As a result, import cargo began to flow again, and negotiations between the US and China restarted and were going well, by all accounts.
On May 28th, the US Court of International Trade ruled the tariffs illegal. President Trump used the International Emergency Economic Powers Act (IEEPA) to implement many of the tariffs. The three-judge panel ruled the situation did not rise to the level of an emergency when placed on all countries and was an overreach of presidential authority.
And…the tariffs were off.
On May 29th, a federal appeals court paused the Court of International Trade’s decision while it considers the challenges to the lower court’s ruling. The appeals court indicated the case will be heard by a panel of all eleven judges.
And…the tariffs are back on.