Trump Modifies Auto Tariffs, Announces Shipbuilding Tariffs
As economic data continues to show potential damage from the Reciprocal Tariffs announced on April 2, the White House has continued to implement its tariff agenda with fees announced on freight vessels made in China while pushing ahead with negotiations with trade partners.
Country-specific tariffs announced in April have been paused until 12:01am on July 9 to give trading partners time to negotiate deals with the U.S. Simultaneously, the Trump Administration has clarified that auto tariffs and tariffs on steel and aluminum will not “stack,” meaning only one of those tariffs will apply to imports, based on tariff line.
Separately, the shipbuilding fees announced by the Trump Administration that will be phased in over several years could end up costing freight companies up to $5.2 million for certain ships, according to an analysis by Bloomberg.
Please contact Dan Neumann with any questions.
Commerce Department Launches Investigations of Critical Minerals and Medium and Heavy Trucks
The Trump Administration announced on April 15 an investigation into the supply chains for critical minerals used in the defense industrial base in jet engines, missile guidance systems, advanced computing, radar systems, advanced optics, and secure communications equipment. If the investigation finds imports threaten national security, the president would impose tariffs.
Separately, on April 22 and with less White House attention, the Department of Commerce announced an investigation into the effects on national security of imports of medium and heavy-duty trucks and parts. Duties have already been placed on cars and light trucks, based on an investigation completed in President Trump’s first term.
Please contact Dan Neumann with any questions.
12 States Challenge Reciprocal and Other Tariffs in Federal Courts
The state of Oregon filed a lawsuit with 11 other states challenging President Trump’s use of the International Emergency Economic Powers Act (“IEEPA”). Several businesses have also filed suit. These lawsuits are expected to be linked together and move through the Court of International Trade, a federal court specifically established for trade related legal actions.
The suits generally argue that the president does not have the authority to impose tariffs under IEEPA, that the president did not follow proper procedure in declaring emergencies that required tariffs, and that the president failed to follow the Administrative Procedures Act when implementing the tariffs. The complaint led by Oregon can be found here.
Please contact Dan Neumann with any questions.