CHPS Podcast Episode 7: After IEEPA – What’s Next for Tariffs?

In Episode 7 of CHPS of Insight, host Chris White welcomed Kelsey Christensen to explore the Supreme Court’s recent decision on tariffs imposed under the International Emergency Economic Powers Act (IEEPA) during President Trump’s administration. Together, they unpacked the significance of this decision, its impact on businesses, and potential future actions by the current administration.

Understanding the Supreme Court’s Decision

The Supreme Court’s recent judgment revolves around President Trump’s use of the IEEPA statute to impose tariffs. This decision has stirred considerable anticipation due to its implications on trade policies. The court determined that the IEEPA did not inherently grant the President the authority to impose tariffs, as this power primarily rests with Congress. This pivotal ruling has effectively nullified tariffs previously levied under the IEEPA.

Implications of the Ruling

With tariffs deemed unauthorized, businesses that endured these costs under the IEEPA stand to potentially reclaim the tariffs paid. However, the road to refunds isn’t straightforward. Christensen discussed the distinction between liquidated and unliquidated entries, explaining how this status affects the process for securing refunds. Liquidated entries might require judicial intervention, whereas unliquidated entries could be resolved administratively.

The Path Forward: Navigating Future Tariffs

The judgment changes the landscape, but doesn’t entirely close the chapter on tariffs. Other statutes, like Section 232 and Section 301, remain viable pathways for imposing tariffs, based often on national security concerns or unfair trade practices. The administration has hinted at leveraging Section 122 to impose temporary tariffs, pending congressional approval after 150 days. The possibility of further investigations under Section 301 could reshape the tariff scenario, affecting imports from countries deemed to have burdensome trade practices.

What’s Next?

Businesses must stay alert as the administration navigates these complex waters. The trade deals recently negotiated with countries like the UK, India, and Bangladesh hang in the balance, potentially affected by future tariff decisions. New directives and formalized guidance are anticipated soon, shedding light on how existing international agreements will align with emerging trade policies.

White and Christensen agreed that the ever-evolving tariff landscape necessitates vigilant attention from businesses and legal experts alike. As the situation develops, monitoring official channels for updates will be key to understanding how policies might change and affect international trade operations.

CHPS of Insight continues to provide expert analysis and timely updates on trade and policy, ensuring that listeners remain informed and prepared for industry developments.

This podcast is intended for general informational purposes only and does not constitute legal or financial advice or a solicitation to provide legal services. The information in this podcast is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Listeners should not act upon this information without seeking professional legal counsel. The views and opinions expressed in the podcast represent those of the individual speaker only and are not necessarily the views of Clark Hill PLC.