The Court of International Trade on May 13 heard arguments in the lead case on the president's ability to impose tariffs under the International Emergency Economic Powers Act. Judges Jane Restani, Gary Katzmann and Timothy Reif pressed counsel for the plaintiffs, the Liberty Justice Center's Jeffrey Schwab, and DOJ attorney Eric Hamilton on whether the court can review whether a declared emergency is "unusual and extraordinary," as well as the applicability of Yoshida International v. U.S., a key precedential decision on the issue, and whether the major questions doctrine applies and controls the case (V.O.S. Selections v. Trump, CIT # 25-00066).
President Donald Trump touted his plan to get foreign health purchasers to pay more for pharmaceuticals, and U.S. consumers to pay less, as he signed an executive order seeking to equalize those prices.
The Trump administration is leaving 20% tariffs levied in response to fentanyl smuggling in place, while reducing what had been 125% reciprocal tariffs to just 10%, the same as all reciprocal tariffs globally.
The reduction of the reciprocal tariff on China from 125% to 10% will take effect at 12:01 a.m. ET on May 14, said President Donald Trump in an executive order. The decrease will not be retroactive.
Rep. Young Kim, R-Calif., introduced a bill to require notification of Congress and provide justification for tariffs enacted through presidential action.
Rep. Jamie Raskin, D-Md., and Senate Minority Leader Chuck Schumer, D-N.Y., are teaming to introduce a bill called the Truth in Tariffs Act.
White House spokesperson Karoline Leavitt, in a press briefing on May 8, told a reporter that even after the negotiations are done with the U.K., the president is not open to removing an additional 10% tariff on nearly all British goods. Countries like the U.K., that buy more U.S. goods than they export to the U.S., were hit with 10% tariffs, on the argument that if their trade barriers were lower, they would buy even more.
The only two countries in the world whose trade deals with the U.S. are still being honored are Mexico and Canada, a Mexican trade expert said, meaning the impact of fentanyl tariffs, steel and aluminum Section 232 tariffs, and auto and auto parts tariffs on Mexico's exports to the U.S. is not as dramatic as initially feared. Still, nearly 30% of the $505.9 billion in goods exported to the U.S. last year would face 25% additional tariffs now, either because the goods are subject to a Section 232 action, or they are goods that cannot meet USMCA rules of origin, an expert said.
President Donald Trump said on social media early May 9, "80% Tariff on China seems right! Up to Scott B." He was referring to Treasury Secretary Scott Bessent, who will meet with China's vice premier in Switzerland on Saturday and Sunday to talk trade.
The 10% tariff on the first 100,000 autos exported annually from the U.K. will be "all-in," according to the Office of the U.S. Trade Representative. CBP couldn't clarify whether that would be done by removing most favored nation duties on U.K. autos and then applying a 10% tariff rate, or whether the additional tariff rate for in-quota autos would be 7.5%.