The U.S. Court of International Trade ruled that President Trump's sweeping global tariffs implemented under the International Emergency Economic Powers Act (IEEPA) are illegal. While the ruling temporarily halted global reciprocal tariffs and fentanyl-related tariffs, it does not affect Section 232 tariffs on steel, aluminum, and automotive imports (25%) or Section 301 tariffs on China from Trump's first term.
The Trump administration appealed the ruling, and a federal court reinstated the tariffs during the appeal. Experts note that the president could also pursue alternative legal routes to reimpose tariffs, including expanding Section 232 coverage to other sectors or using a section of the Trade Act of 1930 to impose tariffs of up to 50% on imports from "nations that discriminate against the U.S."
For the beverage alcohol industry, this uncertainty around potential appeals or alternative tariff mechanisms makes long-term procurement and pricing strategies challenging.
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