Automakers who build cars in the U.S. will be able to avoid paying tariffs on some imported auto parts, to the degree that they have sold U.S.-built cars in the U.S., a senior Commerce official said on a call with reporters.
Automakers who build cars in America and import parts to do so will get a partial credit against the costs of 25% Section 232 tariffs on non-USMCA qualifying parts -- but the Commerce Department will examine companies' projections of both how many cars and light trucks they expect to build in the U.S. between April 3, 2025 and April 30, 2026, and the aggregate value of the MSRP of those vehicles.
President Donald Trump issued an executive order April 29 exempting all goods "subject to" International Emergency Economic Powers Act tariffs on Canada and Mexico from Section 232 tariffs on steel and aluminum.
Correction: A credit that automakers will be able to put toward tariffs on auto parts will be set at 3.75% of the MSRP of vehicles they have built and sold in the U.S., a senior Commerce official said on a call with reporters.
CBP released a notice on the end of de minimis eligibility for products from China and Hong Kong beginning May 2, as outlined in an executive order issued earlier this month. The notice describes the new system of tariffs on carriers for postal shipments that will take effect on that date, as well as changes to the Harmonized Tariff Schedule to implement the changes.
The Commerce Department quietly launched an investigation into the national security threat of the import of trucks of gross weight of more than 10,000 pounds and components and systems for medium- and heavy-duty trucks, including engines and engine parts, transmissions and powertrain parts, as well as electrical components.
Twelve U.S. states, led by Oregon, filed a lawsuit at the Court of International Trade challenging President Donald Trump's ability to impose tariffs using the International Emergency Economic Powers Act. The complaint contests all of Trump's tariff orders issued under IEEPA as a violation of both the statutory authority conveyed by IEEPA and the Constitution's principle of separation of powers. The suit, filed by Oregon Attorney General Dan Rayfield, also challenges CBP's series of Cargo Systems Messaging Service notices implementing the tariffs under the Administrative Procedure Act.
The Court of International Trade denied a motion from five importers to put an emergency block on President Donald Trump’s reciprocal tariffs, in an order issued late on April 22. CIT Judges Jane Restani, Gary Katzmann and Timothy Reif ruled the five importers haven’t shown that “immediate and irreparable harm” would result from not issuing a temporary restraining order while the court considers the importers’ request for a longer-lasting preliminary injunction.
The U.S. Court of Appeals for the Federal Circuit on April 21 held to a strict interpretation of the principle of finality of liquidation, ruling that the Court of International Trade can't consider equitable reasons for ordering reliquidation of finally liquidated entries. Judges Richard Taranto and Raymond Chen said the trade court can't order reliquidation beyond the statutory exceptions, which specifically refer to filing a protest with CBP or a civil action at the trade court. Judge Jimmie Reyna dissented from the ruling, arguing that the majority misapprehends CBP's protest procedures and improperly limits "CIT’s authority to enforce its judgments to a level that is inferior" to the full authority of an Article III court.
A group of five companies filed a complaint at the Court of International Trade challenging the president's authority to impose tariffs under the International Emergency Economic Powers Act. The complaint, drafted by the conservative Liberty Justice Center, says President Donald Trump's use of IEEPA to impose "reciprocal" tariffs "exceeds his statutory authority." The lawsuit adds that even if IEEPA grants this authority, it amounts to an "unconstitutional delegation of legislative authority." The lawsuit is the third of its kind to challenge the use of IEEPA to impose tariffs but is the first to be filed at the trade court.