On Friday, the long-awaited opinion on Learning Resources dropped…and it wasn’t good news for the President. By a 6-3 margin, the President’s use of IEEPA to impose tariffs was ruled unconstitutional. The Administration reacted quickly to replace the IEEPA regime with a new stopgap 10% universal tariff enacted under Section 122 authority, with the promise of a more permanent regime to come. On Saturday, he proposed raising the Section 122 tariff from 10% to 15%, but there has not to date been a Presidential Action. The Court was silent on the issue of refunding the roughly $170 billion in revenues collected under IEEPA. Meanwhile, Trump made it clear that Section 232 tariffs on autos, steel, and aluminum will remain in place. There is a lot to unpack here in terms of administrative, legal, and political ramifications.
The immediate pivot provides temporary clarity, but key deadlines and new investigations could quickly alter the landscape again. If you want to know how this affects importers, North American partners, and Congress’s role going forward, continue reading below
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