By Matthew Leffler
The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
In a seismic ruling on Wednesday, the United States Court of International Trade (CIT) delivered a stinging defeat to President Donald Trump’s aggressive tariff policies, striking down a series of import duties imposed under the International Emergency Economic Powers Act (IEEPA). The cases, V.O.S. Selections, Inc. v. United States and Oregon v. United States, challenged Trump’s Worldwide, Retaliatory and Trafficking Tariffs, which slapped duties as high as 25% on goods from Canada, Mexico and China, and 10% globally. The CIT’s decision, calling the tariffs an unconstitutional overreach, has sent shockwaves through the freight forwarding, trucking and logistics sectors. Here’s what happened, why it matters and what’s next for global trade.
The tariffs: A bold play with a shaky foundation
Since taking office in January, Trump has leaned heavily on tariffs to address trade deficits and drug trafficking, invoking IEEPA — a 1977 law granting presidents emergency economic powers — to bypass Congress. The Worldwide and Retaliatory Tariffs, rolled out via Executive Order 14257 in April, imposed a 10% duty on all imports, with higher rates (up to 50%) targeting 25 countries, including a tit-for-tat escalation with China peaking at 125% before settling at 20%. The Trafficking Tariffs, launched in February, hit Canada and Mexico with 25% duties and China with 20%, ostensibly to pressure those nations to curb drug trafficking.
These tariffs disrupted supply chains, jacked up costs for importers and sparked fears of retaliatory trade barriers. V.O.S. Selections, a group of small businesses, and a coalition of 12 states led by Oregon, argued the tariffs were an illegal power grab, violating IEEPA’s limits and Congress’ exclusive authority over commerce under Article I of the Constitution. The CIT agreed, handing plaintiffs a clean sweep on summary judgment.
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