Tag: trade policy

Steel and Aluminum Tariffs: On June 4, 2025, President Donald J. Trump’s administration enacted a sweeping increase in U.S. import duties on steel and aluminum, doubling the tariff rate from 25 percent to 50 percent on most trading partners. At the same time, Washington imposed a firm deadline for foreign governments to submit their “best offers” to negotiate exemptions under broader trade terms slated to take effect on July 8, including what the administration has termed its “Liberation Day” tariffs. Aside from the United Kingdom—which secured a preliminary agreement on May 8, maintaining a 25 percent steel and aluminum rate until July 9—no other nation had finalized a deal by the June 4 deadline. In the words of Trade Representative Jamieson Greer, “These measures reinforce American sovereignty and send a clear message: we will not tolerate unfair trade practices” (Office of the U.S. Trade Representative, June 4, 2025).

On May 28, 2025, a three-judge panel of the U.S. Court of International Trade (CIT) delivered a landmark ruling invalidating the broad “Liberation Day” tariffs that President Donald J. Trump had imposed without congressional approval. The court held that the president “exceeded any authority … to regulate importation by means of tariffs” under the International Emergency Economic Powers Act (IEEPA), concluding that “Because of the Constitution’s express allocation of the tariff power to Congress … we do not read IEEPA to delegate an unbounded tariff authority to the President.” This decision strikes at the core of longstanding tensions over separation of powers, national emergency authorities, and the evolving scope of executive discretion in U.S. trade policy.

On May 30, 2025, a federal appeals court delivered a dramatic reprieve to President Trump’s tariffs, temporarily reinstating duties that a lower court had struck down as exceeding presidential authority. Originally imposed on April 2, 2025, under broad proclamations of “national emergencies,” these tariffs ranged from 10 percent on Chinese imports to 25 percent on select Mexican and Canadian goods. The underlying legal conflict spotlights deep tensions between executive power and judicial oversight, raising fundamental questions about separation of powers in trade policy.

Federal Court Blocks Trump's Sweeping Tariffs: On May 28, 2025, the U.S. Court of International Trade issued a landmark ruling in V.O.S. Selections, Inc. v. United States, striking down the "Liberation Day" tariffs imposed by former President Donald Trump under the International Emergency Economic Powers Act (IEEPA). The court found that the tariffs exceeded the authority granted by IEEPA, leading to a significant shift in U.S. trade policy and a notable reaction in global markets.

INTRODUCTION In the wake of shifting economic dynamics, Asia’s stock markets have found themselves in a delicate balancing act, influenced by a host of factors,...

In the first quarter of 2025, the U.S. economy contracts in Q1 2025 by 0.3%, marking the first decline since early 2022. This downturn was primarily driven by a surge in imports as businesses and consumers rushed to purchase foreign goods ahead of new tariffs introduced by President Donald Trump. The resulting record trade deficit significantly dragged down GDP.