September 10, 2025—Top Stories:
Supreme Court Takes Up Cases on IEEPA Tariffs, Sets Argument for Early November
The Supreme Court agreed to hear two cases, on an expedited basis, concerning the legality of tariffs imposed under the International Emergency Economic Powers Act. Briefing will conclude by Oct. 30, and the consolidated cases will be heard the first week of November. The high court decided to consolidate two cases on the issue, one of which was fully before the court on the merits following the U.S. Court of Appeals for the Federal Circuit’s ruling that the reciprocal tariffs and tariffs on China, Canada and Mexico to combat the flow of fentanyl went beyond the president’s authority in IEEPA. The second case, which was pending before the U.S. Court of Appeals for the D.C. Circuit was exclusively on whether IEEPA categorically allows for tariffs.
Bessent: Treasury Will Give Refunds if US Loses IEEPA Case
The Treasury Department will refund tariffs imposed through the International Emergency Economic Powers Act if the government loses its case at the Supreme Court, Treasury Secretary Scott Bessent said.
Bessent, speaking on NBC’s “Meet the Press” on Sept. 7, said that if the Supreme Court rules that tariffs imposed through IEEPA are illegal, then “we would have to give a refund on about half the tariffs.” The case involves only the IEEPA reciprocal tariffs and fentanyl tariffs against Canada, China and Mexico, which amounts to about $160 billion out of the total of about $270 billion in total trade remedy tariffs collected this fiscal year, according to recent CBP data.
Bessent stressed that he is “confident that we will win at the Supreme Court,” and should the U.S. lose, “there are numerous other avenues that we can take.” Resorting to alternate tariff authorities, however, will “diminish President Trump’s negotiating position,” he said.
India and US Resume Trade Talks
President Donald Trump and Indian Prime Minister Narendra Modi took to social media to deescalate a weekslong conflict between the two nations and reopen trade talks between. Trump, in a post to Truth Social Tuesday night, said he was “pleased to announce” that India and the U.S. were resuming trade negotiations after weeks of standstill. Modi, in a post on X, described India and the U.S. as “close friends and natural partners” and said he was looking forward to the conversation with Trump.
CBP Corrects Errors in USMCA Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions
On January 17, 2025, U.S. Customs and Border Protection (CBP) published an interim final rule in the Federal Register amending the CBP regulations to add implementing regulations for the preferential tariff treatment and related customs provisions of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) related to general definitions, drawback and duty-deferral programs, textile and apparel goods, and automotive goods, among others. Errant amendatory instructions resulted in the inadvertent omission of two conforming amendments and the removal of two paragraphs that were unrelated to the USMCA amendments. This action corrects those errors. Effective September 8, 2025.
What the United States Can Learn from the Mexican Auto Import Scheme
Yuri Unno, former AAEI member and adjunct fellow (non-resident) with the Economics Program and Scholl Chair in International Business at the Center for Strategic and International Studies penned an article on what the U.S. can learn from the Mexican Auto Import Scheme. The article looks at how a popular Mexican trade policy that seeks to reduce tariffs on critical components could be a more effective way to attract companies to invest and increase national security in the United States. See Full CSIS Article.
CSMS # 66151866 - UPDATE – Products Exempted from Reciprocal Tariffs
The purpose of this message is to provide updated guidance on the duties due on imported merchandise imposed by Executive Order 14257, issued April 2, 2025, “Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits,” as amended. The September 5, 2025 Executive Order, “Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements” provides updates to the list of products exempted from the reciprocal tariffs.
US Will Not Make WTO Recissions
The White House has quietly removed the World Trade Organization from a list of foreign aid programs targeted by President Donald Trump’s pocket rescission package announced last week, suggesting he does not intend to claw back $29 million in U.S. contributions to the the global trade body.
A Trump administration official confirmed that last week’s statement announcing the new rescissions package had been updated online to remove mention of the WTO and two other international organizations. The official said the updates were made to “limit confusion” and that the White House had initially listed programs like the WTO to give examples of what U.S. foreign aid money had previously funded.
Increasing Calls for Secondary Tariffs on Russia and Support Countries
Democrats in the Senate are arguing that it’s time to pass a bipartisan bill that would authorize up to 500% tariffs on goods from countries that buy Russian oil and gas and aren’t providing aid to Ukraine to defend itself.
There are 85 senators sponsoring Graham’s bill, which requires 500% tariffs on all Russian goods 15 days after enactment, as long as Russia continues to refuse to negotiate peace or continues to seek to dismantle Ukraine. It also gives the president the power to impose 500% tariffs on countries that are importing oil, gas or uranium from Russia, but it allows him to carve out a country or a product for up to 180 days, and countries that are aiding Ukraine are exempt from the secondary tariff.
As for when Republican leadership puts the bill on the calendar, is still unclear. The White House doesn’t oppose Congress passing the bill.
AAEI Members Invited to Egypt for Home Appliances and Tableware Show
AAEI members are invited to participate in Egypt’s Home Appliances and Tableware Show “HATS”, a premier exhibition organized by the Engineering Export Council of Egypt. The event will be held in Cairo from November 16-18, 2025, and is the largest of its kind in Egypt.
The Engineering Export Council of Egypt would like to extend a special invitation to AAEI members interested in outsourcing their products from Egyptian manufacturers. Egypt is prepared to cover the round-trip airfare and hotel accommodation for one representative from each participating U.S. company for the duration of the event, November 15-18, 2025.
If you or someone from your company is interested in this opportunity, please email your interest to [email protected]. For more details, please visit the official event website: https://hatsegypt.com.
Industry Insight:
Chapter 98 Tariff Saving Strategies: What Importers Need to Get Right—and Avoid Getting Wrong
Chapter 98 of the Harmonized Tariff Schedule offers significant opportunities for duty savings—but comes with strict rules and documentation requirements. Missteps can lead to unexpected costs or penalties.
Learn how to maximize benefits while staying compliant in our latest article, written by Tom Gould, COAC member and Chief Strategy & Compliance Officer at Gaia Dynamics.
