International Emergency Economic Power Act (IEEPA) tariffs were invalidated by the US Supreme Court (SCOTUS) back in February of this year. Importers and other entities who paid these tariffs are eligible for refunds via the ACE Secure Data Portal. Thus far, more than $70B in IEEPA tariffs have been refunded…$600M to Amazon alone.
To replace the IEEPA tariffs, the Trump Administration invoked Section 122 tariffs, which are temporary, 90 days, and use trade imbalances as a reason for imposing them. The tariff was set at 10% across the board. The Court of International Trade invalidated the use of Section 122 tariffs in May citing they did not meet the necessary criteria. That ruling was appealed to the US Court of Appeals who allowed the administration to continue to collect these tariffs through their expiration date of July 24, 2026.
Effective July 25, 2026, Section 301 tariffs are in place. These tariffs required a formal investigation by US Trade Representatives (USTR) into unfair trade practices, including forced labor. After investigation, the administration assessed a 10% tariff on countries with laws in place to combat forced labor and 12.5% on countries without such policies. These duties are layered on existing tariffs and were placed on 59 countries plus the European Union.
A lawsuit has been filed with the Court of International Trade, by the same group who sued over the IEEPA tariffs, claiming the USTR “acted arbitrarily and capriciously by imposing near-uniform tariffs across 60 materially different economies without a reasoned, record-based explanation for how the tariffs would address the practices USTR identified.”
USMCA negotiations are not going well. The US has declined to extend the agreement, which means the trade pact will have to undergo annual reviews for the next ten years and will likely result in the termination of the agreement. Are separate agreements in the future?
Trade talks with Mexico continue positively, but tensions between the US and Canada continue to build. Canadian provinces continue to boycott US alcohol. US autos and dairy experience discriminatory practices. In response, the US announced a 50% tariff on series of Canadian goods.
Even the long-awaited, highly-anticipated opening of the new Gordie Howe bridge connecting Detroit and Ontario fell victim to the animosity with delays and a less-than-grand grand opening.