Trump’s Tariffs Ruled Illegal: Most Measures Can Only Last Until October 14

🔹 News Background

On August 29, the U.S. Court of Appeals for the Federal Circuit ruled that most of former President Trump’s new tariff measures were illegal and invalid. The court noted that Trump’s reliance on the International Emergency Economic Powers Act (IEEPA) did not authorize him to impose sweeping tariffs.

In a 7–4 decision, the court upheld the lower court’s ruling.

Currently, these tariff measures will remain in effect until October 14, giving the U.S. government time to appeal to the Supreme Court. The ruling mainly affects the retaliatory tariffs imposed in April and those levied in February against China, Canada, and Mexico. However, tariffs on steel, aluminum, and automobiles remain unaffected, as they were imposed under Section 232 of the Trade Expansion Act.

Trump quickly denounced the ruling on social media, stressing:
“ALL TARIFFS ARE STILL IN EFFECT!”

🔹 Data Insights

Scope of tariffs: Retaliatory tariffs against China, Canada, and Mexico.

Key timeline: Current tariffs valid until October 14 pending a Supreme Court ruling.

Alternative legal options: Trump may attempt to use the Trade Act of 1974 or Section 301, though the former offers limited authority and the latter involves lengthy procedures.

🔹 Impact on Trade and Business

For international trade partners

Legitimacy of large-scale U.S. tariffs has been weakened.

Other countries may delay commitments or push for renegotiations.

Ongoing uncertainty in U.S.–China trade relations.

For businesses and markets

Increased uncertainty: Companies need contingency plans for different judicial outcomes, raising operational costs.

Supply chain disruptions: Sectors highly dependent on U.S.–China trade (furniture, textiles, electronics) face potential cost and delivery risks.

Dual risks: Even if tariffs are lifted after October, short-term volatility in freight rates and customs clearance remains.

🔹 Recommendations

Plan ahead for customs clearance: Exporters should complete shipments and declarations before the October 14 deadline to avoid sudden policy shifts.

Diversify shipping strategies: Consider multiple transport modes (ocean, air) and entry ports to mitigate risks.

Track policy updates closely: With tariffs heavily politicized, businesses must monitor Supreme Court developments and prepare reserve funds for potential cost surges.

Work with experienced freight forwarders: Stay updated on regulations, port operations, freight rates, and compliance changes to minimize risks.

🔹 Call to Action

The U.S.–China trade landscape is changing rapidly. Tariffs and compliance risks have a direct impact on your shipping costs, delivery times, and supply chain stability.

👉 Want to know the best tariff response strategies, optimized shipping routes, and up-to-date compliance insights?
Contact Passionship International Logistics today for customized solutions to safeguard your business.