U.S. International Trade Court Blocks Trump Tariffs: A Turning Point for Cross-border E-commerce?

Major Ruling: Court Strikes Down "Liberation Day Tariffs"

On May 28, 2025, the U.S. Court of International Trade issued a landmark ruling: declaring President Trump's "Liberation Day Tariffs" announced on April 2, 2025, illegal. The court determined that these tariff measures exceeded the authority granted under the International Emergency Economic Powers Act (IEEPA) of 1977.

Key Points of the Ruling

• Legal Basis: The court unanimously held that prolonged trade deficits and dependence on foreign manufacturing do not constitute an "unusual and extraordinary threat" as defined under IEEPA
• Constitutional Violation: The ruling identified violations of two constitutional principles:
  • The nondelegation doctrine
  • The major questions doctrine
• Practical Impact: Unless the government obtains an emergency stay through appeal:
  • Customs must cease collecting related tariffs
  • Refund all collected duties
  • Reinstate the $800 de minimis duty exemption policy

Dramatic Turn: Appeals Court Steps In

Just one day later, on May 29, 2025, a significant development occurred. The U.S. Court of Appeals for the Federal Circuit approved the Trump administration's request for a stay, temporarily suspending the International Trade Court's injunction. The Appeals Court has requested written arguments from both parties due in early June, leaving the final outcome uncertain.

Review: Evolution of Trump's 2025 Tariff Policy

Phase One: National Security Focus

• February 1, 2025: 25% tariffs imposed on Canada and Mexico; 10% on Chinese goods
• March 3, 2025: Tariffs on Chinese goods increased to 20%

Phase Two: Global Expansion

• April 2, 2025:
  • Announced "Liberation Day Tariffs": 10% global tariff
  • Additional tariffs on countries with large trade deficits (especially China)
  • Elimination of $800 de minimis exemption for Chinese goods
• April 10, 2025: Chinese import tariffs surged to 125%

Phase Three: Adjustment and Moderation

• May 12, 2025: 90-day U.S.-China agreement reached
  • Chinese goods tariffs reduced to 30%
  • Packages under $800: Option of 54% tariff or $100 flat fee

Strategic Responses for Cross-border E-commerce

1. Supply Chain Diversification

• Avoid over-reliance on single countries or suppliers
• Establish multi-regional sourcing networks
• Monitor emerging supply markets

2. Dynamic Pricing Strategy

• Monitor HS code and corresponding tariff changes
• Implement dynamic pricing mechanisms
• Rationally distribute cost increases

3. Brand Value Enhancement

• Create distinctive brand identity
• Develop private label products
• Focus on user experience and service quality

4. Policy Monitoring

• Follow official policy announcements
• Join industry associations for latest updates
• Establish rapid response mechanisms

Conclusion

While tariff policies remain volatile, challenges often bring opportunities. Successful cross-border e-commerce businesses must maintain composure amid changes, strengthening competitiveness through supply chain optimization, brand building, and service improvements. While staying vigilant to policy changes is crucial, dramatic adjustments should be avoided. Companies focused on creating long-term value will ultimately emerge stronger from this transformation.