by Craig Brightup, The Brightup Group —
Tariff updates since IHA’s August Government Affairs blog include a court decision on IEEPA tariffs, more steel and aluminum tariff categories, steeper tariffs for products from India, an extended China tariff deadline, and progress for the U.S.–European Union (EU) trade deal.
Legal Challenge to IEEPA Tariffs
As explained in the August blog, a legitimate threat to President Trump’s reciprocal tariffs is the legal challenge (V.O.S. Selections v. Trump) to using the International Emergency Economic Powers Act (IEEPA) as the basis for them and on May 28 the U.S. Court of International Trade ruled to strike them down. On July 31, the Court of Appeals for the Federal District heard arguments per the government’s appeal and on August 29 upheld the ruling against the IEEPA-based reciprocal and fentanyl tariffs. The Court allowed the tariffs to remain in place through Oct. 14 to give the Trump Administration time to file an appeal with the U.S. Supreme Court seeking a fast-track review and ruling. But it’s likely a Supreme Court decision on one or all of the challenges to IEEPA tariffs won’t be decided until the spring of 2026, so the Administration also petitioned to keep the tariffs in place beyond Oct. 14. Should the Supreme Court rule against the IEEPA tariffs, it’s unclear whether the tariffs would have to be refunded and, if so, the mechanics by which such refunds would be implemented.
Sec. 232 Steel and Aluminum Tariffs
A notice published August 19 by the U.S. Dept. of Commerce Bureau of Industry and Security (Federal Register :: Adoption and Procedures of the Section 232 Steel and Aluminum Tariff Inclusions Process) added 407 derivative product categories to the 50% steel and aluminum tariffs. The additions include cutlery, household and kitchenware products which are covered if they entered the U.S. or were withdrawn from a warehouse for consumption on or after 12:01 am ET on August 18, 2025.
Steeper Tariffs on India
A 25% tariff on products from India effective August 1 was raised to 50% by President Trump as punishment for India buying Russian oil. The 50% rate took effect on August 27 and covers textiles and apparel; gems and jewelry; leather and footwear; marine products; chemicals (organic); automobiles and auto parts; iron, steel, aluminum; agricultural products; machinery and engineering goods; ceramic, glass, stone, rubber Items; paper and wood products; furniture; and dairy products. The U.S. has for now exempted some sectors such as pharmaceuticals and electronic goods from additional tariffs.
Extended China Tariff Deadline
In a widely anticipated move, the August 12 deadline to end the moratorium for higher tariffs on products from China was extended by President Trump by another 90 days. Thus, U.S. trade negotiators and their Chinese counterparts now have until mid-November to hammer out a new trade deal.
U.S.–European Union Trade Deal
The August blog reported that on July 28, President Trump announced a trade deal with the European Union (EU) which agreed to a U.S. tariff rate of 15% on most items, including autos, auto parts, pharmaceuticals and semiconductors, but with tariffs on steel, aluminum and copper remaining at 50%. The EU also agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion in the U.S. by 2028. Progress on the deal was made on August 21 when the U.S. and EU issued a joint statement for new terms to the trade agreement to eliminate EU tariffs on U.S. industrial products and implement the 15% U.S. tariff cap for most other sectors.
