A US federal court blocked some of Trump’s tariffs but left others intact. Hooper & Co managing director David Hooper explains what remains in place, what could happen next, and the key actions for businesses to take.
What does this mean for my business today?
Nothing changes immediately. All existing tariffs remain in place while Trump appeals the court decision.
This includes:
- Still paying: 25% tariffs on steel, aluminium, and auto imports from the US (these were unaffected by the court ruling)
- Still blocked: Universal 10% tariffs and higher reciprocal tariffs (but Trump has appealed, so these could return)
- Still uncertain: New sector-specific tariffs under investigation for pharmaceuticals, semiconductors, aircraft, and critical minerals
Don’t make major business decisions based solely on this court ruling. The legal battle will take 12-24 months to resolve, and Trump has alternative ways to impose tariffs during this period.
What has the court actually blocked and what remains?
Blocked: Tariffs imposed under the International Emergency Economic Powers Act (IEEPA):
- Universal 10% tariffs on most countries
- “Liberation Day” reciprocal tariffs (11-84% rates)
- Anti-fentanyl tariffs on China, Mexico, and Canada
Still in effect: Section 232 tariffs under the Trade Expansion Act of 1962:
- 25% on steel imports
- 25% on aluminium imports (increased from 10% in February 2025)
- 25% on automobiles and auto parts
- All derivative products of these materials
What is Section 232?
Section 232 allows presidents to impose tariffs after the Commerce Department investigates whether imports threaten “national security.” This authority has several advantages over IEEPA:
Stronger Legal Foundation: Courts rarely overturn national security determinations Sector-Specific Focus: Targets particular industries rather than blanket coverage
Established Process: Follows formal investigation procedures with public comment periods
Current active investigations (all initiated since April 2025):
- Processed critical minerals and derivative products
- Commercial aircraft, jet engines, and parts
- Pharmaceuticals and pharmaceutical ingredients
- Semiconductors and related products
What arrangements are specific to the UK?
- Steel and aluminium: The UK negotiated “alternative arrangements” replacing flat tariffs with tariff-rate quotas allowing specific volumes at reduced rates. These arrangements were revoked effective March 12, 2025, returning the UK to full 25% tariffs
- Aircraft sector: The May 8th US-UK framework agreement specifically mentions UK exemptions from Section 232 aircraft tariffs currently under investigation.
- Other sectors: UK arrangements for pharmaceuticals, semiconductors, and critical minerals remain unclear and require monitoring as investigations proceed.
What is the US legal system’s timeline?
Appeals process:
- Next stop: US Court of Appeals for the Federal Circuit
- Potential Supreme Court review if appealed further
- Emergency stays possible to reinstate tariffs during appeals
- Complete process typically 12-24 months
Section 232 investigations:
- Legal maximum: 270 days from initiation
- Recent pattern: Trump pushing for 4-6 month completion
- Public comment periods: Usually 21-30 days
- Presidential decision: 90 days after Commerce Department report
Congressional oversight:
- Can terminate national emergencies through joint resolutions
- Requires two-thirds majority to override presidential veto
- Historically rare (only terminated COVID emergency this way)
What are the potential outcomes?
- Appeals success: Court ruling overturned, IEEPA tariffs reinstated alongside existing Section 232 duties
- Legal constraints upheld: Section 232 becomes primary tariff mechanism, requiring sector-by-sector investigations
- Partial restoration: Some IEEPA authority survives but with narrower scope than originally claimed
What actions should I be taking now?
High priority:
- Audit your tariff exposure across all product lines
- Review supply chain documentation for origin verification
- Monitor Section 232 investigation announcements in your sector
- Assess currency hedging needs given dollar volatility
Medium priority:
- Evaluate alternative suppliers outside tariff scope
- Consider inventory adjustments for critical components
- Review customer contracts for tariff pass-through clauses
What else do I need to be aware of?
- Tariff classification complexity: Products may fall under multiple HS codes with different treatment
- Supply chain variables: Origin rules, processing stages, and derivative product definitions matter
- Bilateral agreement details: UK exemptions vary by sector and have specific conditions
- Investigation Scope: Section 232 probes can expand to cover related products
Essential research steps:
- Identify your exact HS codes for all products
- Map your supply chain to establish origin and processing stages
- Check if your sector is under active Section 232 investigation
- Verify current UK exemption status for your specific products
What should I be keeping an eye on moving forward?
- Legal developments: Appeals court filings and hearing schedules
- Investigation progress: Commerce Department reports and public comment deadlines
- UK negotiations: Bilateral framework implementation details
- Sector analysis: Industry-specific tariff impact assessments
What is the bottom line?
This court ruling shifts Trump’s tariff strategy rather than ending it. Section 232 investigations are proceeding rapidly across multiple sectors, and existing steel/aluminium/auto tariffs remain fully operational.
The UK’s protective arrangements vary significantly by sector. Steel/aluminium protections were actually revoked in March 2025, while aircraft exemptions are still being negotiated.
Generic advice cannot substitute for detailed analysis of your specific products, supply chains, and tariff classifications. The complexity requires professional assessment of your particular situation.
Based on current legal and regulatory developments. Seek specialized trade advice for your specific circumstances.
