Letschatstars.

Letschatstars.

US IEEPA Ruling: New Trade Risks and Institutional Game

US IEEPA Ruling: New Trade Risks and Institutional Game

On May 28, 2025, a bipartisan panel of the US International Trade Court ruled unanimously that the Trump administration's implementation of global tariffs under the International Emergency Economic Powers Act (IEEPA) violated constitutional principles of separation of powers. However, this ruling was frozen by the federal appellate court within 24 hours, with customs authorities continuing to enforce the original tariffs during the appeal. This has led to enforcement difficulties for businesses, as importers must still pay the original tariff rates despite the court's finding.

Within 48 hours of the ruling, Trump announced an increase of steel and aluminum tariffs from 25% to 50%, taking effect on June 4, and chose to rely on Section 232 of the Trade Expansion Act (national security clause) to avoid IEEPA judicial review. This indicates that the administration has established a systematic policy circumvention strategy, creating contradictions between court rulings and administrative decisions, with Section 232 becoming a policy tool.

Moreover, the Trump administration announced a $14.9 billion investment from NSSMC in the US, representing a new model of “tariff threat + investment compromise.” This model might be replicated in critical industries such as semiconductors and pharmaceuticals, profoundly affecting the global supply chain. This lawsuit features bipartisan characteristics and reflects industry pressures that transcend party lines.