Five importers challenging the tariffs imposed under the International Emergency Economic Powers Act told the U.S. Court of Appeals for the Federal Circuit that the government's defense of the tariffs' legality falls short. The importers, represented by the conservative advocacy group Liberty Justice Center, argued that IEEPA categorically doesn't provide for tariffs, IEEPA is precluded from being used to address trade deficits due to the existence of Section 122, and the Court of International Trade was right to issue an injunction against the tariffs (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1812).
A spokesman for the European Commission said the EU is not viewing the new Aug. 1 effective date of higher country-specific reciprocal tariffs as a sign they have more weeks to reach an agreement with the U.S. on tariffs. "Our aim remains to find an agreement before the ninth of July," Olof Gill told reporters in Brussels on July 7.
President Donald Trump issued an executive order late July 7 that said he is postponing the effective date of higher country-specific reciprocal tariff rates from July 9 to Aug. 1 "based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners."
Two days before the now extended pause on higher country-specific reciprocal tariffs was to end (see 2507070054), President Donald Trump shared screenshots of letters he is sending to trading partners large -- Japan, South Korea, Thailand, Indonesia and Malaysia -- and small, informing them what rates their goods will face at the border, starting Aug. 1.
President Donald Trump issued an executive order late July 7 that said he is postponing the effective date of higher country-specific reciprocal tariff rates from July 9 to Aug. 1 "based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners."
President Donald Trump shared the text of his "offer letters" to Japan and South Korea, telling those countries' leaders that goods from their countries will be subject to 25% tariffs, beginning Aug. 1. Back in April, he had said a 24% reciprocal tariff rate would apply to Japanese goods, and a 25% rate would apply for South Korean goods, with those rates briefly taking effect before being delayed until July 9.
Sidley trade lawyer Ted Murphy sent a note to clients about his thoughts on the U.S.-Vietnam tariff deal announced July 2 "based on what we (think we) know about the deal thus far," though he noted that the deal is likely still being negotiated.
Treasury Secretary Scott Bessent said in an interview with CNBC on July 3 that the Vietnam deal is "finalized in principle" and that 20% will replace the current 10% reciprocal tariff. As for which goods will be subject to 40% tariffs, Bessent didn't add any clarity. "A huge amount of the trade that comes from Vietnam is what’s called transshipment from China," he said. "We’ll see what happens with the transshipment."
President Donald Trump expressed pessimism about reaching a trade deal with Japan, and suggested that the tariff rate would be higher than the 24% country-specific rate briefly in effect April 9 in comments to reporters traveling on Air Force One July 1.
President Donald Trump posted on social media that Vietnamese goods would face a 20% tariff, rather than an originally proposed 46% reciprocal tariff, in exchange for zero tariffs on U.S. exports.