The Hardwood Federation produces a “D.C. Cheat Sheet” newsletter to keep the industry up-to-date on the latest news from Washington D.C. Check out the May 29th edition below and sign up to receive your copy.
U.S. Trade Court Blocks Trump Tariff Action: The U.S. Court of International Trade ruled that President Trump does not have the authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to impose sweeping tariffs on a global level. The court blocked most categories of tariffs, including the 10 percent baseline tariff on all countries, the 30 percent tariff on Chinese goods, and the 25 percent tariffs on imports from Canada and Mexico. Tariff collection is ordered to be halted within 10 days. Tariffs issued under national security powers (Section 232 actions) on steel, aluminum, and cars remain in place. Section 232 investigations underway related to pharmaceuticals, lumber, and critical minerals will not be impacted.
White House Response: The White House immediately appealed the decision and affirmed their belief that the president and his team have the legal authority to act under the IEEPA. Administration officials and legal scholars also point out that the president has other options to draw upon, but none as broad as IEEPA. For example, the 1974 Trade Act gives presidents the power to impose tariffs of up to 15 percent for up to 150 days, but only in the event of a balance of payments crisis. The case now moves to the Supreme Court.
Continued Uncertainty: It remains unclear how the ruling will impact trade. Uncertainty for U.S. companies and their global trading partners remains as it is unclear what the ruling means for importers who have already paid tariffs or have goods on the water that may or may not be subject to tariffs when they arrive at port. Exporters, including those in the U.S. hardwood industry, may also be uncertain about how countries with retaliatory tariffs in place will respond to the ruling. There are also questions about how the decision impacts ongoing negotiations with U.S. trading partners including China, the European Union, India, and Japan.
The Hardwood Federation will continue to work closely with the American Hardwood Export Council to monitor and assess impacts of this latest development.
Source: Hardwood Federation