November 5, 2025—Top Stories:
Supreme Court Questions Trump’s Use of IEEPA
Both conservative and liberal justices on the U.S. Supreme Court expressed skepticism earlier today over President Trump’s use of emergency powers to impose global tariffs, according to a recent article from POLITICO.
At issue is whether IEEPA grants the president authority to impose tariffs without congressional approval. Chief Justice John Roberts noted that tariffs are “a core power of Congress,” and several Justices raised doubts about the administration’s argument that IEEPA’s language allowing the president to “regulate imports” extends to tariff authority. Lower courts have already ruled that Trump exceeded his authority under IEEPA, and the justices’ questioning suggests the high court may agree. A decision in the case is expected next year.
AAEI Board Meets with CBP Commissioner
AAEI’s Board of Governors met with U.S. Customs and Border Protection’s (CBP) Commissioner Rodny Scott. Kari Finch, AAEI Chair, provided CBP leadership with AAEI’s four customs priorities. AAEI’s four customs priorities are:
- Ensuring the CBP has the critical investments it needs to facilitate trade and advance its mission;
- Ensure that CBP remains committed to reasonable care, informed compliance, and bi-directional education;
- Ensure that new programs unlock trade facilitation benefits through simplified import and export procedures; and
- Ensure CBP and Census modernize the export process to meet safety, security, and facilitation demands.
In the area of bi-directional education, CBP promised to work with AAEI to proactively educate AAEI’s members on considered and pending regulatory changes. AAEI offered to help CBP educate new import specialist and CBP staff on the even changing U.S. supply chain.
Senate Customs Staffer Updates AAEI on Customs Bills
Jake Parker, Senior Policy Advisor for Trade and Tax to Senator Bill Cassidy, M.D., presented to AAEI members during the association’s bi-weekly Government Affairs Briefing. Parker provided updates on Congress’ customs modernization and trade enforcement legislation. His discussion pointed to the Congress interest in providing CBP with more access to advanced data while tightening restrictions on non-resident importers and illicit trade. Parker also noted that the Senate has a companion trade facilitation bill, which would seek to reward trusted U.S. importers with trade facilitation benefits.
Parker previously served as a professional staff member on the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party. He provided members with an outlook on U.S.-China trade policy, including the recent U.S.-China trade truce.
AAEI's USMCA Comments
Last Friday, AAEI submitted comments to the United States Trade Representative (USTR) advocating for the continuance of the United States–Mexico–Canada Agreement (USMCA) and its vital role in supporting U.S. trade competitiveness. AAEI advocates for the profitability of American companies—and that profitability begins with USMCA compliance. To effectively navigate the complexities of modern trade policy, companies need certainty, transparency, and efficiency. A strong and predictable USMCA helps enhance American productivity and maintain a safe, secure, and efficient supply chain. We applaud USTR for fostering a meaningful, two-way dialogue with the U.S. trade community that will lead to more effective implementation of the agreement.
Joint Statement from AAEI and IE Canada on USMCA/CUSMA
This joint statement reflects AAEI’s and the Canadian Association of Importers and Exporters (IE Canada’s) support for the cooperation trade agreement between the United States – Mexico – Canada Agreement (USMCA/CUSMA).
Mexico Will Postpone Tariff Increases Until 2027
Mexican authorities published in the Parliamentary Gazette that various provisions of the Tariff of the General Import and Export Tax Law will be postponed to at least August 2027. The draft decree, which proposed modifications to 1463 tariff classifications with average increases of 35% (and up to 50% in some cases), will not be considered until the new session of the Chamber of Deputies. This does not stop the executive branch from submitting similar proposals. However, based on current information, it is not expected that this matter will come into effect in January 2026.
Senate Rejects Reciprocal Tariffs
For the third time in three days, the Senate was asked whether it approves of President Donald Trump’s tariffs. And for the third time, they said “no.”
This time, the vote was to end the national emergency Trump used to declare global “reciprocal” tariffs, the sweeping duties of between 10 and 50 percent that he imposed on nearly every country in the world this summer.
The vote passed 51-47, with the same group of four Republican senators crossing party lines as on previous votes this week disapproving of Trump’s tariffs on Canada and Brazil: Rand Paul of Kentucky, Lisa Murkowski of Alaska, Susan Collins of Maine and Mitch McConnell of Kentucky.
The vote is unlikely to undermine the agreements, however, since House Republican leadership has blocked votes on Trump’s tariffs until March. Even if the House did eventually approve that or other tariff resolutions, Congress would need a two-thirds majority to overcome a presidential veto.
The ‘Sleeper Issue’ at the Heart of Trump’s Trade War on China
For months, companies and officials throughout Asia have been waiting for President Trump to address a question that cuts to the heart of his disruptive plans for global trade.
How will he decide the origin of goods in a world where virtually all the things we buy, from computers and phones to sofas and cars, contain parts that come from different countries? Source: New York Times.
CBP Releases Section 232 Guidance on Buses, Medium- and Heavy-Duty Trucks and Parts
CBP released guidance on Section 232 import duties for medium- and heavy-duty trucks, medium- and heavy-duty truck parts, and buses via an Oct. 29 cargo systems message.
US-EU Deal: Lutnick Invited to EU
The European Union has invited U.S. Commerce Secretary Howard Lutnick to Brussels on Nov. 24 for talks with the bloc’s trade ministers, a Danish official familiar with the situation told POLITICO.
The Danish presidency of the Council of the EU, as well as the European Commission, have invited the commerce secretary to attend a lunch with ministers dedicated to trade relations between the United States and the EU. The invitation comes as rifts with China over its latest export controls on rare earths redefine relations between Washington, Beijing and Brussels.
Lutnick hasn’t yet formally confirmed his attendance at the ministerial meeting, the official added.
The invitation, which has been in the works for months, comes as Brussels and Washington are still going through the implementation of commitments struck in Scotland in July between U.S. President Donald Trump and the European Commission President Ursula von der Leyen. European Commission spokesperson Olof Gill confirmed the invitation had been extended to Lutnick.
Brussels is still pressing Washington for tariff exemptions on sensitive sectors such as spirits and chemicals, and has raised concerns about the U.S. expanding its list of derivative steel products subject to a 50 percent tariff.
Importers Need to Prepare Middleman Documentation Supporting First Sale Claims
According to a recent article in International Trade Today, as CBP ramps up enforcement and seeks to ensure that importers’ claims of first sale are valid, expect the agency to pay close attention to the documents of the middleman, said tax consultants with KPMG.
When a CBP import specialist first looks at whether a first-sale transaction has occurred, the import specialist will be focusing primarily on the transaction itself because “they’re appraisers for classification. Then they do valuation, but not at the level of audit,” said Teresa Halpin, KPMG director of trade enforcement and advisory services. Halpin was previously with CBP as the New York field director for CBP’s Office of Trade Regulatory Audit.
She continued, “When an import specialist conducts these transactional analyses, they’re determining whether you’re actually filing for first sale. Because they don’t know. They don’t know until they ask the questions. And once they determine there’s this multi-tier transaction, they must determine whether they’re going to accept it at the [CF-] 28, [or] whether they’re not accepting it [and will] issue a [CF-29 form] … If they refer to audit, basically it’ll be a comprehensive review.”
CBP can use this approach through an expanded interpretation of Treasury Department Decision 96-87, said Rodrick Lawlor, KPMG director of trade enforcement and advisory services.
If an importer is under audit, it may need to ask its middleman for more information, such as journal entries of transactions from the middleman, according to Irina Vaysfeld, principal at KPMG.
UFLPA Violations Increased in 2025 YTD
From January through September of this year, CBP has denied U.S. entry to 5,806 imported shipments, valued at $55.6 million, as a result of enforcing the Uyghur Forced Labor Prevention Act (UFLPA), according to data recently released by the agency. This is the highest level of denied shipments, compared with the January through September period for fiscal years 2023 and 2024, and represents a much higher proportion of denied shipments to released shipments, though the value of denied shipments is lower.
