Judges have recently resisted President Trump’s proposed 10% tariffs, which were aimed at nearly all U.S. trade partners. The U.S. Court of International Trade judges suspended these tariffs, asserting that the administration’s invocation of the International Emergency Economic Powers Act (IEEPA) was not suitable and that the president had exceeded his jurisdiction. The IEEPA is designed to tackle trade disparities, rather than being utilized for emergency measures such as imposing tariffs.
The court’s ruling carries significant consequences for international trade and U.S. businesses. Samsung, for example, had been increasing its production of the Galaxy S25 series, bracing for the tariffs. However, with the possibility of a 25% tariff on devices made outside the U.S., including those from Samsung and Apple, companies might transfer these expenses to consumers, resulting in a potential 40% hike in price for Samsung’s Galaxy phones in the U.S.
The Trump administration intends to contest the court’s ruling, but for the moment, the verdict offers a temporary relief for international trade partners and U.S. companies dependent on imported products. The scenario underscores the persistent tensions and intricacies in global trade regulations and their immediate effects on businesses and consumers.
