As new and expanded tariffs continue to loom over the U.S. economy, equipment manufacturers are bracing for serious economic impacts. Over the last several months, AEM has heard concerns from member companies about the challenges posed by the tariffs – and the uncertainty that they bring – as well as questions about how they can best prepare for the road ahead.
To help members navigate this moment, AEM has launched a comprehensive Tariff Resources Page to provide a one-stop shop with the most up-to-date information, guidance, and resources. This page offers sector-by-sector breakdowns of the various impacts, White House fact sheets and executive orders, resources for compliance, analysis by the AEM Advocacy Team, and much more.
On May 28, the U.S. Court of International Trade, which hears disputes involving international trade and customs law, found that the International Emergency Economic Powers Act (IEEPA) “does not authorize the President to impose unbounded tariffs.” The finding strikes down the 10% baseline additional “reciprocal” tariffs announced on April 2 as well as the “reciprocal” tariffs of between 20% and 50% of another 65 or so trading partners with which the U.S. runs trade deficits. The court further nullified the 25% fentanyl IEEPA tariffs on products from Canada and Mexico and the 20% fentanyl IEEPA tariff on products from China. Meanwhile, the ruling does not affect other tariffs the administration has or might impose under Section 232 of the Trade Expansion Act of 1962 on national security grounds
This currently leaves sectoral tariffs on steel, aluminum, automobiles, and automobile parts, imposed using Section 232, as the only new duties standing.
The Department of Justice has filed an appeal with the U.S. Court of Appeals for the Federal Circuit, which could hear the case on an expedited basis and issue a decision in 2 to 3 months. After that, the case could proceed to the U.S. Supreme Court.
AEM supports the Trump Administration’s goal of securing better and fairer trade deals with our trading partners, including by lowering tariffs on U.S. exports and expanding market access for equipment manufacturers. But we also remain committed to mitigating the impact of certain trade policies on U.S. equipment manufacturers. As new policies are announced, directives are issued, and market dynamics shift, we will continue to update this resource to keep our member companies informed and prepared.
Please bookmark the page and check back frequently for the latest information. And if tariffs are impacting your business, we want to hear from you; email us at advocacy@aem.org.
Click here to access the Tariff Resource Page.
