The Supreme Court of the United States has ruled that the broad-based, globally effective import duties imposed under the International Emergency Economic Powers Act (IEEPA) have no viable legal basis.
In the court's opinion, the IEEPA does not authorise the President to impose comprehensive, general import tariffs. This means that these so-called ‘IEEPA tariffs’ no longer have a legal basis.
Tariffs under Section 232 and Section 301 remain unaffected
This decision does not affect tariffs based on other legal grounds, in particular measures under Section 232 of the Trade Expansion Act (national security, e.g. steel and aluminium) and Section 301 of the Trade Act of 1974 (response to unfair trade practices). These remain in force unless they are challenged separately. Companies in the metal and industrial sectors must therefore continue to expect corresponding customs duties and compliance requirements!
President's response: New tariffs under Section 122
In response to the ruling, US President Trump announced that he would impose a global tariff rate of 10% based on Section 122 of the Trade Act of 1974. This provision allows the President to temporarily impose ad valorem duties of up to 15% to address balance of payments problems or significant trade imbalances.
However, the measure is temporary: without further legislative action, it will generally apply for a maximum of 150 days. Any extension beyond this would require action by Congress or another legal basis.
Exemptions from the new 10% tariff
Various product groups are exempt from the new tariff rate in order to limit the economic impact on the US. These include, among others:
• USMCA-compliant goods from Canada and Mexico
• Critical minerals and energy sources
• Pharmaceuticals and their components
• Certain agricultural products
• Selected electronic, automotive and aviation products
No return to the ‘de minimis’ exemption
There are no plans to reintroduce the so-called ‘de minimis’ exemption. Duty-free imports of low-value shipments remain suspended. This means that small consignments sent by international post are also subject to the new customs duty rate.
Increased Section 301 investigations
In addition, the Office of the US Trade Representative has announced that it will initiate new Section 301 investigations under an expedited procedure. The aim is to take action against trade practices that the US considers unjustified or discriminatory.
Links:
Ending Certain Tariff Actions – The White House
Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries – The White House
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