Schulz Trade Tribune: August 29 to September 5, 2025
- Schulz Trade Law
- Sep 6
- 4 min read
Schulz Trade Tribune: August 29 to September 5, 2025
September 6, 2025
CAFC Finds IEEPA Tariffs Unlawful
On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed the Court of International Trade’s (CIT) holding that President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs exceeded the scope of IEEPA’s language. Specifically, the majority opinion of the 11-justice panel highlighted that the phrase “regulate…importation or exportation of” does not permit the President of the United States to impose tariffs for an unlimited duration. CAFC also remanded the CIT’s decision in part, stating that, in lieu of Trump v. CASA, a recent Supreme Court decision that banned a lower court’s use of universal injunctions, CIT must reconsider the appropriate injunctive relief only for the plaintiffs who brought the suit against the United States.
Shortly after CAFC published its decision, the Solicitor General for the United States filed a motion with the U.S. Supreme Court to expedite consideration for a writ of certiorari petition. If the U.S. Supreme Court decides to expedite consideration and review the legality of Trump’s IEEPA tariffs, then U.S. Supreme Court proceedings would begin in Mid-September and conclude during the first week of November.
Importantly, IEEPA tariffs will remain in effect until the U.S. Supreme Court makes its decision.
Please contact Michelle Schulz with additional questions.
Modification of Reciprocal Tariff Scope
On September 5, 2025, President Trump issued an executive order to modify the scope of reciprocal tariffs.
Effective September 8, 2025, products listed in Annex II of this executive order will be exempt from the scope of President Trump’s reciprocal tariffs. Annex III also provides reciprocal tariff exemptions for certain products, but a product will only qualify for an exemption if a country has concluded a trade agreement with the U.S., and the specific product falls within “the scope and nature” of that agreement.
Please contact Michelle Schulz, Marina Mekheil, or Josh Rodman with additional
questions.
U.S.-Japan Framework for Trade Agreement
The Trump Adminstration has announced the framework for a trade agreement between the U.S. and Japan, and retroactive to August 7, 2025, both parties have agreed to the following obligations:
Ad Valorem Rate
- Japanese products with an ad valorem duty rate less than 15% – as listed in General Duty Rate column of the Harmonized Tariff Schedule of the United States (HTSUS) – will be subject a total duty rate of 15%.
Japanese products with an ad valorem duty rate of 15% or higher – as listed in General Duty Rate column of the HTSUS – will not owe any additional duties.
Aerospace
Japanese aircraft and aircraft parts will be imported duty free into the United States, so long as the products are not classified as unmanned aircraft and
would fall under the World Trade Organization Agreement on Trade in Civil
Aircraft (CAA).
Section 232: Japanese Automobiles and Auto Parts
If the combined ad valorem rate – as listed in the General Duty Rate column of
the HTSUS – and Section 232 duty rate for a Japanese automobile or auto part
is less than 15%, then it will be subject to a total duty rate of 15%.
If the ad valorem duty rate for a Japanese automobile or auto part is 15% or
higher – as listed in the General Duty Rate column of the HTSUS – then it will not be subject to any additional Section 232 duties.
Japanese Natural Resources and Pharmaceuticals
The U.S. will allow the following Japanese products to be imported into the
United States at a 0% duty rate:
Natural resources unavailable in the United States,
Generic pharmaceuticals,
Generic pharmaceutical ingredients, and
Generic pharmaceutical chemical precursors.
Please contact Marina Mekheil or Matt Savage with additional questions.
Entities Removed from Validated End-User Program
On September 2, 2025, The U.S. Bureau of Industry and Security (BIS) issued a final
rule to remove the following entities from its Validated End User (VEU) program:
Samsung China Semiconductor Co. Ltd,
Intel Semiconductor (Dalian), and
SK Hynix Semiconductor (China) Ltd.
Effective December 31, 2025, the three entities will not be able to export, reexport, or transfer (in-country) specific Export Administration Regulations (EAR) controlled items without additional licensing.
Please contact Josh Rodman or Kelly Mccorkle with additional questions.
DOJ & DHS Launch Trade Fraud Task Force
The Department of Justice (DOJ) and Department of Homeland Security (DHS) recently announced the launch of a cross-agency Trade Fraud Task Force. DOJ emphasized that the task force’s main initiative is to “bring robust enforcement against importers and other parties who seek to defraud the United States.” To achieve its initiative, the task force will leverage assets from the following agencies:
U.S. Customs and Border Protection (CBP),
U.S. Immigration & Customs Enforcement (ICE), and
DOJ’s Civil and Criminal Divisions, including the Corporate Whistleblower Program.
Please get in touch with Mark Jenkins with additional questions.
Schulz Trade Law’s Role in Supporting Clients
While these changes may feel overwhelming for companies operating within their respective global sectors, Schulz Trade Law PLLC actively tracks these developments and offers advice on how to mitigate risk, assess tariff exposure, and adapt your compliance strategies. Our team is here to provide timely, tailored support and, importantly, help you make the trade.
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