September 3, 2025—Top Stories:
Trump Signals Imminent Supreme Court Appeal to Protect Tariffs
President Trump signaled that he would ask the Supreme Court as soon as Wednesday to overturn a ruling that found many of his punishing tariffs to be illegal, claiming that an erosion in his power to wage a global trade war would inflict severe financial damage on the United States.
It is unclear if the Supreme Court intends to hear Mr. Trump’s appeal on an expedited basis. But the White House could face an uphill battle, given that legal scholars across the political spectrum have raised myriad objections to its claims to sweeping tariff powers under the International Emergency Economic Powers Act.
On Friday, the U.S. Court of Appeals for the Federal Circuit ruled 7 to 4 against Mr. Trump’s interpretation, finding it was unlikely that Congress had ever intended to grant the president nearly unlimited authority to impose tariffs as part of that law. The panel of judges sided with small businesses and states, which first prevailed in front of a lower court in May, after judges there similarly ruled that IEEPA did not grant the president “unbounded” powers.
Mr. Trump does have other tariff tools at his disposal, but they are more limited than the emergency powers that he has invoked to impose levies of between 10 percent and 50 percent on countries across the globe. Statutes such as Section 232 of the Trade Expansion Act of 1962 typically require consultations and investigations that can take several months to carry out. That would prevent the president from arbitrarily raising and lowering tariffs.
Other trade laws allow the president to issue sweeping tariffs, but only for a limited period of time. Section 122 of the Trade Act of 1974, for example, allows a president to impose duties of up to 15 percent globally for up to 150 days. Another provision of that law, Section 301, allows the president to issue broad tariffs in response to unfair trading practices, after first carrying out consultations and an investigation.
Yet another long-unused statute, Section 338 of the Tariff Act of 1930, allows the president to impose tariffs of up to 50 percent on countries that have discriminated against the commerce of the United States.
Mr. Trump did not share on Tuesday whether his administration was contemplating any of those authorities.
White House Downplays New Tariffs on Small Packages
The Trump Administration vigorously defended President Donald Trump’s decision to end a trade program that exempts low-value imports from tariffs — despite moves by dozens of foreign countries to suspend package shipments to the U.S starting at midnight tonight.
Trump signed an executive order on July 31 that ended the long-standing provision, which exempts packages valued at $800 or less from tariffs and certain customs inspection requirements. Those packages will now be subject to the same tariffs as other shipments from their countries of origin, ranging from 10 to 50 percent.
At least 25 countries have temporarily halted small-dollar shipments to the U.S., according to a report released by the United Nations’ Universal Postal Union earlier this week, as they scramble to develop new systems to collect the duties. That includes several European countries, Australia, India, Japan, South Korea and Mexico. Canada Post, a federal government agency, confirmed in a statement that it has hired Zonos to collect and remit duties on mail destined to U.S. addresses.
CBP has stated that they are ready to enforce the end of the de minimis.
European Socialist Mobilize Against Trump’s EU Deal
The European Socialists have come out against the accord that Commission President Ursula von der Leyen struck with U.S. President Donald Trump in July. That will make her job of building the majority she needs to enact the tariff truce a tough one — and failure to do so could plunge the transatlantic trade relationship back into turmoil.
The Socialists’ opposition imperils the EU’s efforts to present the pact as guarding transatlantic unity against Moscow. It also deepens a rift with von der Leyen’s center-right allies the European People’s Party (EPP), who support the deal — which has in the past worked with the S&D to pursue a moderate agenda.
The most immediate test for the deal will be when the Parliament weighs in on the legislation proposed by the Commission last week to scrap the tariffs on U.S. industrial goods — a prerequisite for Washington in turn to lower its tariffs on European autos to 15 percent from 27.5 percent.
To pass, the legislation would require a simple majority of votes cast. If von der Leyen can’t persuade the S&D group to back the trade deal, her party would, along with the moderate coalition allies that elected her to a second term, need the votes of the right-wing European Conservatives and Reformists group and the far-right party Patriots for Europe to secure its passage.
The Christian Democrats (ELP) were not planning to join the S&D in their plan. However, there is a negative feeling in the Parliament in what the Commission achieved in the negotiations. Also, not all parties agree with the EU not following the WTO-rules. There is still a belief that the agreement will pass.
US restricts TSMC Chip Supply Shipments to China as Tech Race Heats Up
The Department of Commerce has revoked Taiwan Semiconductor Manufacturing Company’s (TSMC’s) authorization to freely ship essential equipment from the US to China. The removal of the “validated end user” status, effective on 31 December, follows the Trump administration’s recent decision to restrict shipments from Samsung and SK Hynix to China. The move will potentially upend production at TSMC’s key chip-making base in Nanjing, which creates older-generation devices, as future shipments will require export licenses.
U.S. Customs and Border Protection, Los Angeles/Long Beach Seaport (LALB), California - Trade Compliance and Agriculture Transfers for Warehouse Exam
U.S. Customs and Border Protection has notified Terminal Operators and the trade community of CBP requirement of controlled drayage of container shipments presented for CBP examination for CBP trade exams. The message augments Public Bulletin LA14-013.
Canadian negotiators continue to seek a deal to remove heightened tariffs on goods not covered by USMCA. The trilateral trade deal is up for renewal next year. Canadian Prime Minister Mark Carney said that he’d like USMCA talks to begin next month, adding he expects them to stretch between 6 and 18 months. Trade negotiations have been kept high level between leaders like Commerce Secretary Howard Lutnick and his Canadian counterpart, Canada-U.S. Trade Minister Dominic LeBlanc.
Trump Administration Cancels WTO Funding
The Trump administration is canceling $29 million in U.S. funding for the World Trade Organization (WTO), marking another step back by Washington from the beleaguered rules making body. The move comes after the U.S. paused its 2024 and 2025 contribution to the WTO following a Feb. 4 executive order directing a broader review of funding for international institutions. In a statement posted Friday, the White House derided the WTO as “toothless,” claiming it has, for decades, “aided and abetted global trade cheating by the Chinese Communist party,” without elaborating further.
Industry Insight: U.S. Updates Strategy to Combat Forced Labor in Global Supply Chains
DHS has released its 2025 update to UFLPA, signaling intensified U.S. enforcement against goods made with forced labor. Julie Ann Parks, AAEI Chair Emeritus, shares steps that customs and trade professionals need to take to ensure compliance. [Read more]
