A U.S. federal court has ruled against President Donald Trump’s use of emergency powers to impose tariffs on Mexican imports, potentially offering relief to travelers and businesses operating between the two countries.
The United States Court of International Trade determined that Trump exceeded his authority when using the International Emergency Economic Powers Act (IEEPA) to implement the so-called “fentanyl trafficking” tariffs on Mexico and other nations. The court gave the U.S. government 10 days to halt these tariffs.
The 25% tariff currently affects non-USMCA compliant Mexican products, though Economy Minister Marcelo Ebrard previously stated that between 85-90% of Mexican exports to the U.S. remain tariff-free due to USMCA compliance.
However, the situation remains fluid. The Federal Circuit Court of Appeals has granted a temporary stay on the trade court’s ruling following the White House’s prompt appeal. This means the tariffs will remain in place while the legal challenge continues.
Importantly for travelers and businesses, the ruling does not affect other U.S. tariffs on Mexican steel, aluminum, vehicles, and auto parts that were imposed under Section 232 of the United States Trade Expansion Act for national security reasons. Mexican cars currently face an average 15% tariff when exported to the United States.
President Claudia Sheinbaum has taken a cautious approach, stating that Mexico’s Economy Ministry will analyze the ruling’s implications while awaiting the outcome of the U.S. government’s appeal.
The continuing trade tensions create uncertainty for tourism and transportation industries operating between the two countries as Mexico attempts to negotiate better trading terms with its northern neighbor.
For more information, visit the source.
- About the Author
- More info
Leave a Reply