Overview

• The Federal Circuit paused the May 28 injunction from the U.S. Court of International Trade, restoring the broad import duties imposed under the International Emergency Economic Powers Act.
• A three-judge CIT panel had ruled that IEEPA does not grant the president “unbounded authority” to levy blanket 10%–145% tariffs on dozens of countries.
• The administration has filed an appeal and signaled confidence that the Supreme Court will ultimately affirm presidential power over emergency trade measures.
• Tariffs enacted under separate statutes, including 25% duties on steel, aluminum and autos under Section 232, were unaffected by the lower court’s ruling.
• Since January, the effective U.S. tariff rate has climbed from about 2%–3% to roughly 15%–18%, stoking concern among businesses and trading partners over policy uncertainty.