U.S. budget bill now with the Senate
What to expect with tariff legal challenges and negotiations
On 28 May, 2025, an U.S. court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), ruling the president hadn't got the authority. The ruling covered reciprocal tariffs, which are now at 10% globally and fentanyl-related tariffs that range from 20-25% on goods from Mexico, Canada and China. A federal appeals court has allowed the tariffs to remain in place for now. The case has been appealed and may reach the Supreme Court.
Additionally, trade policy discussions continue with countries in regard to reciprocal tariffs. A 90-day lowering of duty rates on goods from all countries except China is scheduled to end 9 July 2025. Details on the resumption of the higher rates are still to be determined. For example, whether they will be effective based on sail date or entry date. The reduction of reciprocal tariffs on Chinese-made goods is expected to expire mid-August. Expect more announcements and details to come out in June.
Regardless of how the court case and negotiations are resolved, supply chain professionals should anticipate other trade remedies as the result of multiple Section 232 investigations, including tariffs on imported copper, lumber, seafood, critical minerals and other commodities. For more details, visit the Bureau of Industry and Security website.
Meanwhile, U.S. steel and aluminium tariffs doubled as of 4 June. See further details in the Customs section of this report.
U.S. budget bill
On 22 May, the U.S. House passed a federal budget bill. Within the transportation section of the bill, a new air traffic control system was funded and tonnage taxes on steamship lines were increased, separate from Section 301 China maritime fees.
The bill has now gone to the Senate, with a goal of passage by the Fourth of July break time. For a more detailed description of the freight transportation-related items in it, check out this summary from the Committee on Transportation & Infrastructure.