Global: US court enjoins Trump Administration from reversing tariff exclusions
A hallmark of the Trump Administration trade policy is imposing tariffs --- duties under Section 201 (safeguards), Section 232 (national security), and Section 301 (currently against China for intellectual property practices). For many companies, an integral component of supply chain management has included securing exclusions from these tariffs to avoid crushing duties that sideline downstream projects and value chains. But what happens if an exclusion vanishes without process or fair warning?
The Administration has abruptly withdrawn exclusions in multiple contexts now, including exclusions covering certain solar panels and certain Chinese goods. In the last month, the U.S. Court of International Trade (which has jurisdiction over trade actions in the first instance) made clear that there are limits on the Administration's actions, and that federal agencies must, at a minimum, provide notice and comment periods and a reasoned decision before it can reverse course and apply duties to products that were excluded.