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Showing posts with the label IEEPA

US Reducing South Korea’s Tariffs

  A bilateral trade deal is resulting in the US reducing South Korea’s tariffs on imports. On December 1, Commerce Secretary Howard Lutnick announced that the US will reduce levies to 15% retroactively to November 1. Previously, the US imposed tariffs of up to 25% on South Korean automobiles and other goods. The 25% came from duties the US used under Section 232 of the Trade Expansion Act. Reciprocal tariffs that President Trump imposed under the IEEPA (International Emergency Economic Powers Act) also added to the 25%. In addition to reducing duties to 25%, tariffs on airplane parts from South Korea will be eliminated. The deal will also cap future tariffs on sectors such as semiconductors and Pharmaceuticals at 15%. Why Is The US Reducing South Korea’s Tariffs? The main reason for the tariff reduction is a trade deal between the two countries. Along with the US reducing levies, South Korea will invest approximately $350 billion into strategic US industries. Some of these industri...

US Cutting Tariffs On 200+ Items

  An executive order signed by President Trump on Friday, November 14, has the US cutting Tariffs on 200+ Items. More specifically, the levies that Trump placed on over 200 classifications and eleven categories of agricultural products are now exempt. Some of these food products include beef, coffee, avocados, cashew nuts, tomatoes, and more.  On April 5, 2025, Trump began enforcing a 10% baseline tax on all imports into the US.  He imposed them under the IEEPA (International Emergency Economic Powers Act (IEEPA) declaring it a national emergency. The recent order will remove specific agricultural goods from the reciprocal tariffs. This article explains the purpose of the exemption and what it will mean for international shipping. Why is the US Exempting Tariffs On Agricultural Products? President Trump’s main reason for the tariff rollback is the administration’s progress on numerous trade deals. Since imposing tariffs, the US has reached “framework” deals with agricultu...

IEEPA Tariffs Impacting Small Importers

  While less talked about than large corporations importing into the US, shippers have seen the IEEPA tariffs impact small importers. Smaller and mid-sized importers like mom-and-pop stores have suffered significantly from President Trump’s IEEPA taxes. Earlier this year, Trump used the IEEPA (International Emergency Economic Powers Act) to impose reciprocal levies for most US importers.  After an appeals court ruled the levies Illegal, the Supreme Court agreed to hear the case on an expedited schedule.  With the case going to the Supreme Court next month, smaller importers have a high level of uncertainty. This article will explain the potential impact on smaller importers and how to protect their cargo during this time. How Are The IEEPA Tariffs Impacting Small Importers? The impact of Trump’s IEEPA tariffs on small to mid-sized importers may depend on the Supreme Court’s final ruling.  Shippers could be eligible for a refund if the court decides the tariffs are il...

IEEPA Tariffs Supreme Court Ruling

  President Trump’s IEEPA tariffs Supreme Court ruling could potentially reshape international trade.  On November 5, the Supreme Court will hear two consolidated cases – Learning Resources v. Trump and Trump v. V.O.S. Selections.  In V.O.S. Selections vs Trump, the US Court of Appeals argues that the IEEPA does not authorize sweeping tariffs. Trump recently used the IEEPA (International Emergency Economic Powers Act) to impose reciprocal tariffs for most US importers. Due to the situation’s urgency, the Supreme Court agreed to review the case on an expedited schedule. The outcome of the ruling may significantly impact trade for shippers and the US government. What Are The Major Risks for Trade From Trump’s IEEPA Tariffs Supreme Court Ruling? The Supreme Court’s ruling has various risks, including redefining presidential authority over trade and policy. If the court rules against the Trump administration, the scope of what presidents can do under IEEPA may ...

Trump’s Tariff Hearing Date Is Set

  President Trump’s tariff hearing date is set for November 5, following an announcement from the Supreme Court. The Supreme Court will review two cases:  Learning Resources v. Trump and Trump v. V.O.S. Selections . In Learning Resources v. Trump, businesses challenge Trump’s authority to impose tariffs under the IEEPA (International Emergency Economic Powers Act). The Trump v V.O.S. selections will be the president asking for a review of the ruling striking down the tariffs. Due to the high stakes involved, the Supreme Court is moving the cases on an expedited schedule. If the court rules the tariffs illegal, the US government may have to pay back hundreds of billions to importers. What Is The Issue Regarding Trump’s Tariffs? The issue started in April 2025, when Trump issued sweeping tariffs for all countries importing into the US . Along with a baseline 10% tax, this included specific levies for countries like China, Mexico, and Canada. In addition to reducing tra...

Supreme Court Will Hear Trump’s Tariff Case

  The Supreme Court will hear Trump’s tariff case after an announcement on Tuesday, September 9. In an order released by the court, it was announced that it will review two consolidated cases –  Learning Resources v. Trump  and Trump v. V.O.S  Selections. In Learning Resources v. Trump ,  two small businesses are challenging Trump’s tariffs imposed under the IEEPA as illegal. The belief is that the president cannot impose broad tariffs without definite congressional approval. In Trump V. V.O.S. Selections, the Trump Administration is asking for a review of a  ruling striking down the tariffs . The judges agreed to decide on the case in an expedited timeline, with oral arguments starting in November. The Supreme Court’s expedited schedule will include: Opening briefs due on September 19, 2025. Amicus briefs due on September 23, 2025. Response briefs due on October 20, 2025 Amicus briefs in support due on October 24, 2025. Reply briefs due on October 20, 2025...

The End Of De Minimis

I nternational shipping could soon feel the impact as the end of de minimis approaches on August 29. On July 30, President Trump signed an executive order to suspend the exemption for all countries importing into the US. The de minimis is a threshold value below which goods can enter a country tax-free. In the US, the amount is currently $800 or less after rising from $200 in 2016 due to e-commerce. Trump initially eliminated the de minimis for China on May 2, but the current pause will be for every nation. Taxes for imports previously under the exception will now be assessed by country-specific reciprocal tariffs or the international postal system. Duties for goods imported through the international postal system will now be assessed by ad valorem or specific duty. Ad valorem is a tax based on the origin country and evaluated on the value of the cargo. Specific duty is a fee between $80 and $200 based on the IEEPA rate of the origin country. Trump has various goals behind eliminating ...