Important Tariff Update: New Guidelines and Legal Challenge to 2025 Tariffs

Effective May 14 through August 12, 2025, the United States has temporarily reduced retaliatory tariffs from 145% to a baseline rate of 30% for imports from China.

With this change, the standard baseline tariff now stands at:

• 10% for most countries
• 30% for goods originating from China

We also want to inform you of significant updates following Executive Order 14289, newly released tariff schedules, and a federal court ruling that could reshape the landscape of trade enforcement and compliance.

Summary of Executive Order 14289 GuidanceEO 14289 provides a stacking order for determining applicable tariffs when multiple duties overlap on imported articles. This applies retroactively to goods entered on or after March 4, 2025.

Key highlights:

• Tariff stacking prioritization is now officially defined for:
  • 232 Auto/Auto Parts
  • IEEPA Canada
  • IEEPA Mexico
  • 232 Aluminum
  • 232 Steel
• USMCA exemptions may remove certain duties for qualifying goods.
• Refunds for overpaid duties (excluding 232 Auto/Auto Parts) can be requested starting May 16, 2025.
• New reporting codes (Chapter 99 numbers) required for proper duty classification

For details, refer to the Federal Register Notice posted May 15, 2025, or contact CBP Trade Remedy at traderemedy@cbp.dhs.gov.

Breaking News: Federal Court Halts Sweeping Tariffs

In a major legal development, a federal court ruling issued Wednesday has frozen most of the 10% tariffs imposed by former President Trump on virtually every foreign nation.

Key points from the decision

• The U.S. Court of International Trade ruled that the tariffs exceed the president’s legal authority under the International Emergency Economic Powers Act (IEEPA).
• The 10% global tariffs and additional duties on China, Mexico, and Canada were blocked, with the court stating these tariffs do not address emergency threats as required by IEEPA.
• The ruling challenges the legal foundation of tariffs imposed under claims of national emergencies, particularly those tied to trade imbalances or immigration.
• The judges wrote: “The court does not read IEEPA to confer such unbounded authority and sets aside the challenged tariffs imposed thereunder.”
• Global markets rallied on the news.

Notably, the three judges involved were appointed by Presidents Reagan, Obama, and Trump, highlighting the bipartisan weight of the decision.

The Trump administration has indicated plans to appeal the decision to the Federal Circuit Court of Appeals.

We will continue to update you on key tariff developments as the situation evolves.