All active judges at the U.S. Court of Appeals for the Federal Circuit on July 31 heard oral argument in the lead case on the legality of tariffs imposed under the International Emergency Economic Powers Act. The 11 judges peppered counsel for the government and the parties challenging the tariffs, which include five importers and 12 U.S. states, with questions about whether the statute authorizes tariffs at all; whether there are limits to that tariff authority, should it exist; and whether the major questions or non-delegation doctrines strip IEEPA of its ability to convey tariff authority (V.O.S. Selections v. Trump, Fed. Cir. # 25-1812).
Goods from Mexico that aren't subject to Section 232 tariffs will continue to be excluded from tariffs if they can meet USMCA rules of origin, as will auto parts, President Donald Trump announced about 12 hours ahead of the deadline. For goods outside the Section 232 action, and not eligible for the free-trade agreement benefit, Trump had said the rate would go from 25% to 30%.
The U.S. is raising tariffs on Canada from 25% to 35% effective Aug. 1 because Canada has "failed to cooperate" in stopping flows of fentanyl and other illegal drugs across the border, the White House said in a July 31 fact sheet. Goods qualifying for preferential tariff treatment under USMCA will continue to be exempt from the duties, the White House said, and goods found to have been transshipped to evade the 35% tariff will face a 40% tariff.
The White House is leaving most countries that buy more U.S. exports than they sell to the U.S. at a 10% tariff, and is increasing tariffs from 10% to somewhere between 15% and 41% for countries that have trade deficits with the U.S. -- with a notable exception of Nicaragua, which will remain at 10%.
President Donald Trump posted on social media that "We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper."
The White House is leaving most countries that buy more U.S. exports than they sell to the U.S. at a 10% tariff, and is increasing tariffs from 10% to somewhere between 15% and 41% for countries that have trade deficits with the U.S., with a notable exception -- Nicaragua, which will remain at 10%.
The Court of International Trade on July 29 denied importers Johanna Foods' and Johanna Beverage Company's application for a temporary restraining order against President Donald Trump's threatened 50% tariff on Brazil. Judge Timothy Reif held that the importers failed to show "a likelihood that immediate and irreparable harm would occur before the threatened August 1, 2025 tariff" (Johanna Foods v. Executive Office of the President of the United States, CIT # 25-00155).
The ability to import low-value packages duty-free will end for goods from around the world on Aug. 29, the president declared in an executive order July 30.
President Donald Trump, in a July 30 social media post, said that he had "agreed to a Full and Complete Trade Deal with the Republic of Korea. The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President. Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes."
President Donald Trump said July 30 that Indian goods will face a 25% tariff, plus an unspecified penalty, for buying Russian energy and military equipment "at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE... ."