Uncertain Times Ahead for Global Businesses due to Reinstated Trade Duties under IEEPA
Future of US Tariffs in Limbo as Court Postpones Decision on 'Trump's Tariffs'
The ever-changing landscape of US trade policies has left the Ministry of Commerce with a headache, spurred by an emergency order from the drive-off-the-rails-CAFC temporarily halting a previous ruling by the Court of International Trade (CIT).
With this decision, the good ol' USA can keep on raking in the tariffs slapped under the International Emergency Economic Powers Act (IEEPA), pushing the Ministry to send a strong cautionary message to businesses - buckle up for erratic market swings.
Poonpong Naiyanapakorn, Director-General of the Trade Policy and Strategy Office and the Ministry of Commerce's resident hotshot, spoke about the renewed turmoil stirred up by US tariff measures.
All of this comes after the CAFC playing hero for the US government by backing its emergency request to maintain the existing tariffs for the time being.
Key Timeline:
28th May 2025: The CIT declared an order to halt tariffs evoked under IEEPA's watchful eye. The court had determined that the US administration had grossly overstepped its constitutional authority. This decision waved the red flag on tariffs aimed at China, Canada, and Mexico concerning fentanyl-related substances, as well as reciprocal tariffs leveled globally.
29th May 2025: The US Department of Justice leapt into action by filing an appeal with the CAFC, alongside an emergency plea to pause the CIT's ruling during the duration of the appeal process.
Same day (29th May 2025): The CAFC yielded to the emergency appeal, temporarily putting the kibosh on the CIT's order, hence the US administration's tariffs got a reprieve until the CAFC fully deliberates the appeal.
In the current situation, the US Customs and Border Protection (CBP) will continue squeezing businesses for import duties until the court renders its final verdict.
The appellate court's thorough review process is estimated to last between six to eighteen months on average.
Poonpong also warned that even if the CAFC were to eventually throw their weight behind the CIT's initial decision, the US administration has various legal tricks up its sleeve to keep those tariffs in place.
Trump's Trade Arsenal:
Section 301 (The Trade Act of 1974): Armor-clad in the power granted to the US Trade Representative (USTR), this guy investigates and takes action against unfair trading practices by foreign partners.
Section 232 (The Trade Expansion Act of 1962): Swing the sword to protect the homeland by permitting measures to safeguard national security.
Section 338 (The Tariff Act of 1930): Bestows upon the President the power to slap tariffs of up to 50% on nations acting against US goods, providing the US International Trade Commission (USITC) has completed a probe and penned a report.
The Commerce Ministry will keep a watchful eye on any further developments, but given the protracted nature of judicial proceedings, businesses had better batten down the hatches, as they're likely to face continued uncertainty and potential impacts in the coming months.
- TAGS
- Thailand
- The Commerce Ministry
- US tariffs
- Trade Talks
- economy
- wild-west
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- Uncertainty in the global economy arises as the reinstated international trade duties under IEEPA pose a significant challenge for businesses, especially those with international operations and investments.
- The US Customs and Border Protection's continued collection of tariffs during the appellate court's review process adds to the wild-west atmosphere, causing erratic swings in the general news and finance sectors.
- In response to the renewed turmoil stirred by US tariff measures, Poonpong Naiyanapakorn, the Director-General of the Trade Policy and Strategy Office, calls upon Thai businesses to brace themselves for potential impacts in the coming months.
- Both the US government and the Thai Commerce Ministry are employing various legal tools, such as Section 301, Section 232, and Section 338, to safeguard their interests and maintain existing tariffs in the ongoing trade talks.
- As the Trump's Trade Arsenal is in play, businesses must navigate the complex terrain of international trade and finance, staying abreast of relevant political developments and general news.
