The Court of International Trade rules that the Trump Administration's "IEEPA" tariffs are illegal.
What tariffs does this apply to?
+China - 30% tariff on Chinese exports to the U.S. currently in effect (20% "fentanyl" and 10% "reciprocal").
+57 countries - Tariffs of varying rates on exports from 57 countries to the U.S. paused until July 9th
+The 10% universal tariff applied to exports from all countries to the U.S.
+Mexico and Canada - non-USMCA compliant imports subject to a 25% tariff, and non-USMCA compliant energy and potash imports subject to a 10% tariff.
What happens next?
+The Administration has 10 days to halt the "IEEPA" tariffs.
+The Administration will appeal the ruling so the legal battle will continue. It is possible that the Administration will ask an appeals court to stay today's ruling before it takes effect, which would keep the tarriffs in place while the appeal goes forward.
+The Administration could look to use other trade authorities (e.g., Sec 301/232) to issue tariffs in the event that the courts ultimately strike down tariffs applied under IEEPA.
+How will this affect ongoing negotiations? The U.S. has been negotiating with China and other countries subject to the IEEPA reciprocal tariffs. This ruling may decrease the Administration’s leverage to secure concessions and reach agreement with these partners.
Note that the ruling does not apply to ongoing Section 301 or Section 232 actions that focus on specific industries (e.g., lumber, copper, semiconductors, automobiles).