Key facts
- A federal judge questioned a U.S. Customs and Border Protection official about tariff refund processes.
- An appeals court halted an order for the head of U.S. Customs and Border Protection to testify on tariff refunds.
- The Supreme Court unanimously upheld the SEC's authority to recover illegal profits through disgorgement.
- The SEC does not need to prove victim economic harm to seek disgorgement.
- The Trump administration is using Section 301 investigations into forced labor for new tariffs.
- New tariffs affect approximately 60 trading partners.
- Tariffs range from 10% to 12.5% under Section 301 investigations.
- Vietnam disputes U.S. findings on forced labor.
- The U.S. proposed a 12.5% tariff on Costa Rica over forced labor goods.
- Switzerland rejects U.S. allegations of failing to combat forced labor imports.
- The U.S. is considering additional 12.5% tariffs on Swiss goods.
- A federal judge blocked USDA funds linked to Trump policies.
U.S. courts and agencies are navigating a complex landscape of legal challenges and policy implementations initiated during the Trump administration, particularly concerning tariffs and regulatory authority. A federal judge has questioned a U.S. Customs and Border Protection (CBP) official about the procedures for refunding billions of dollars in tariffs that were deemed illegally imposed, with a particular focus on eligibility for older shipments. An appeals court has since halted an order that would have compelled the head of CBP, Rodney Scott, to testify on this issue, as the administration contests the judge's authority.
In a significant victory for regulators, the U.S. Supreme Court unanimously ruled 9-0 to uphold the Securities and Exchange Commission's (SEC) authority to recover illegal profits through disgorgement, a power that does not require proof of victim economic harm. Separately, the Trump administration is employing Section 301 investigations into alleged forced labor as a new legal basis for imposing tariffs, a strategy designed to withstand legal challenges after emergency powers were previously struck down. These tariffs, ranging from 10% to 12.5%, are impacting approximately 60 trading partners. Vietnam has disputed U.S. findings on forced labor, stating they do not accurately reflect mitigation efforts, while the U.S. has threatened a 12.5% tariff on Costa Rica and is considering additional tariffs on Swiss goods, potentially superseding existing ones.
The administration is also facing legal battles over other policies. A federal judge blocked the U.S. Department of Agriculture from withholding billions in federal funds from states based on compliance with certain Trump administration policies, following a preliminary injunction sought by Democratic attorneys general. In another instance, a judge ordered the administration to resume asylum processing and other immigration benefits for nationals of 39 countries, ruling that policies causing immigrants to be in legal limbo based on their birth country violated federal law. The administration also agreed to remove endangered species protections for the dunes sagebrush lizard, settling a lawsuit filed by Texas Attorney General Ken Paxton, with the U.S. Fish and Wildlife Service to re-evaluate the lizard's status.
Trade agreements are also under scrutiny. The U.S. is set to miss a July 1 deadline for renewing the USMCA with Mexico and Canada, indicating that negotiations on auto manufacturing rules and tariffs will continue, potentially evolving into managed trade. The U.S. has also proposed a 25% tariff on Brazil over trade practices, with Brazil having until July 15 to respond. The U.S. intends to maintain tariff caps in trade deals with the EU and Japan, though new tariffs for forced labor concerns could exceed these caps under Section 301 investigations. Additionally, the U.S. Department of Commerce made a preliminary determination that China and Mexico unfairly subsidize their van-type trailer industries, with countervailing duties expected to range from 82.3% to 128.7%. Enforcement efforts are also targeting importers accused of tariff fraud and duty evasion.
Beyond trade, the administration's actions have extended to domestic policy. President Donald Trump signed an executive order making it easier to fire approximately 8,000 federal workers, primarily senior employees influencing policy, to ensure federal workers carry out administration policy priorities. In a separate legal matter, Donald Trump's lawyers sought a stay of discovery in his $10 billion defamation lawsuit against the BBC, pending a decision on transferring the case to a different judge. The administration also urged a judge to reject an effort to halt an upcoming UFC event on the White House lawn, arguing it is lawful. Thomson Reuters shareholders are set to vote on a resolution concerning the company's contracts with U.S. Immigration and Customs Enforcement (ICE), seeking a review of human rights implications. A U.S. judge granted preliminary approval to a revised $38 billion settlement between Visa, Mastercard, and merchants over swipe fees, aiming to end a 2005 antitrust lawsuit.