Trump Tariffs – What Comes Next

The US Supreme Court has recently ruled President Trump’s imposition of broad import tariffs under the International Emergency Economic Powers Act (IEEPA) to be unconstitutional.  The ruling was clearly a victory for foreign producers/exporters and US importers but has left a host of unanswered questions. How will the ruling be implemented by the lower courts? Will there be refunds issued and how? What must Importers do to “claim” refunds or ensure they are issued and accounted for properly? Do foreign producers/exporters have a right to any of the refunds that they paid directly, or absorbed via lower US import values? Do consumers or consumer groups have a right to collect refunds that were passed on by US importers?

To make matters more complicated, the Trump Administration has imposed a fresh wave of tariffs at 10% (climbing to 15%) under Section 122 of the Trade and Tariff Act of 1974. Are these new tariffs also unconstitutional? Should they be contested?  How will they impact global sourcing decisions and supply chain management? Finally, are there ways to legally reduce or mitigate or avoid paying the Trump tariffs, including 232, 301 and 122 duties? How can transactions be structured or to reduce the impact of these duties.

What are the long-term implications of this Trump-inspired US “trade-tariff” policy?