A container ship arrives at the Port of Oakland on Aug. 1, 2025 in Oakland, California. President Donald Trump announced that his Aug. 1 deadline for trade deals will not be extended and sweeping tariffs will be imposed on certain countries beginning that day. (Photo by Justin Sullivan/Getty Images)

WASHINGTON — President Donald Trump pushed ahead with his promise to raise tariffs on foreign goods by Aug. 1, signing an order late Thursday increasing import taxes on products from nearly every U.S. trading partner.

Trump’s directive, and new data on weaker job growth, sent markets tumbling Friday.

The president imposed a 15% base tariff on products imported from nearly three dozen nations across five continents, plus the 27 trading nations that comprise the European Union. Trump slapped higher rates on select other countries, ranging from 18% on goods from Nicaragua to 30% on South Africa and 50% on Brazil.

The White House hailed the “reciprocal” tariffs as “a necessary and powerful tool to put America First after many years of unsustainable trade deficits that threaten our economy and national security,” according to a press release accompanying the executive order.

Trump describes the tariffs as “reciprocal” because they are his response to countries that have trade deficits with the U.S. — meaning that country sells more products to the U.S. than it buys.

U.S. Trade Representative Jamieson Greer called the new rates “historic.”

“Over the past few months, the President’s tariff program and the ensuing ‘Trump Round’ of trade negotiations have accomplished what the World Trade Organization and multilateral negotiations have not been able to achieve at scale: expansive new market access for U.S. exporters, increased tariffs to defend critical American industries, and trillions of new manufacturing investments and purchases of goods that will create great American jobs and help reassert American leadership in key strategic sectors,” Greer said in a statement Wednesday.

The tariff announcement, combined with a weaker-than-expected jobs report Friday from the Bureau of Labor Statistics, caused sell-offs Friday from the three major U.S. stock indexes, according to financial media reports.

Trump fumed Friday afternoon about report adjustments that significantly decreased jobs numbers for May and June, even calling for the commissioner for labor statistics to be fired.

Tariffs and lawsuits

Trump made history earlier this year when he became the first president to trigger tariffs under the 1977 International Emergency Economic Powers Act.

The move sparked legal challenges from small businesses and Democratic-led states, and the plaintiffs faced the Trump administration Thursday in federal appeals court.

Tariffs are taxes on imported products that U.S. companies and other buyers pay to the U.S. government.

Trump announced staggering tariffs under an emergency declaration on April 2, what he referred to as “Liberation Day,” but delayed the new import taxes after global markets plummeted in response to the shock announcement.

Trump also separately announced Thursday a 35% levy on imported products from Canada that fall outside the bounds of an already established trade agreement between the U.S., Canada and Mexico.

Trump continued a 25% tariff on certain Mexican goods, but paused any rate increases to allow for 90 days of negotiations, according to media reports. The U.S. is continuing negotiations with China, whose products face a base import tax rate of 30%.

Marc Noland, executive vice president and director of studies for the Peterson Institute for International Economics, said Trump’s latest tariff rates are “unfortunate.”

“It will contribute to higher prices and slower growth here in the United States,” Noland said, adding there’s “a question about how sustainable they are legally here in the U.S.”

“And it’s particularly unfortunate, because I’m looking at the entire list of countries and see that the countries with the highest rates are the countries that are in the worst shape — Laos gets 40%, Syria got 41%,  Myanmar gets 40%. It’s the poorest, most desperate countries that are getting hit with the highest tariffs. So it’s bad for us and it’s bad for the world,” Noland told States Newsroom in an interview Friday.

The 15% rate on imports from dozens of countries mirrors the deals Trump announced in recent weeks with Japan, South Korea and European Union — though many details remain unknown.

“There are real questions about what exactly did anybody agree to,” Noland said. “And you know this, these don’t have the force of law that a treaty negotiated and passed by our Congress and somebody else’s national legislature have like, say, the U.S.-Korea Free Trade Agreement, which, as we see, was unilaterally abrogated.”

‘Predictable’ trade agenda urged

Trade and industry advocates have also reacted to the new tariffs.

Gary Shapiro, CEO and vice chair of the Consumer Technology Association, issued a statement Thursday saying Trump’s new rates “highlight the uncertainty American innovators face in today’s trade environment.”

“CTA continues to urge the Administration and Congress to pursue a predictable, forward-looking trade agenda rooted in fairness and collaboration with trusted partners,” said Shapiro, whose organization hosts the annual CES trade show in Las Vegas, Nevada. “American innovation thrives when markets are open, trade rules are clear, and businesses are free to focus on creating jobs and bringing groundbreaking technologies to market.”

The National Foreign Trade Council warned that “Whatever progress that’s ultimately achieved as part of these new trade deals will come at the steep price of significant U.S. tariff increases and the erosion of trust with America’s key partners.”

The statement Thursday from the industry group’s president, Jake Colvin, continued: “Institutionalizing the highest U.S. duties since the Great Depression, coupled with ongoing uncertainty, will ultimately make American businesses less competitive globally and consumers worse off while harming relationships with close geopolitical allies and trading partners.” 

The U.S. Court of Appeals for the Federal Circuit, pictured July 31, 2025. (Photo by Ashley Murray/States Newsroom)

WASHINGTON — Judges on the U.S. Appeals Court for the Federal Circuit questioned the legality of President Donald Trump’s sweeping emergency tariffs Thursday as the White House pushes on with its Aug. 1 deadline for import taxes at levels not seen since the 1930s.

The case originated from consolidated lawsuits brought by a handful of business owners and a dozen Democratic state attorneys general who argued the president does not have the authority to impose tariffs under the International Emergency Economic Powers Act, or IEEPA.

Through nearly two hours of questioning Thursday, the 11-judge panel probed whether the president could use IEEPA authority to set tariffs without approval from Congress.

The U.S. Department of Justice’s Brett Shumate argued the law is “one of the most powerful tools” to protect the economy and national security during emergencies.

Oregon Solicitor General Benjamin Gutman, who argued on behalf of the Democratic states challenging the tariffs, maintained Trump’s reason behind declaring the unilateral emergency tariffs — U.S. trade deficits with other nations — did not actually merit a national emergency.

Trump became the first president to trigger tariffs under the 1977 law when in February and March he ordered punitive import taxes on products from Canada, Mexico and China after declaring illegal fentanyl smuggling from those countries a national emergency.

The president took his tariffs worldwide in an April executive order that declared trade deficits an emergency and slapped what he described as “reciprocal” import taxes on nearly all foreign goods.

In late May, the U.S. Court of International Trade sided with Democratic attorneys general from Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico and Oregon, as well as the business owners from across the country, including in New York, Pennsylvania, Utah, Vermont and Virginia.

The word ‘tariff’

Judges on the panel grilled Shumate about how IEEPA grants the authority to impose tariffs.

“A major concern that I have is IEEPA doesn’t even mention the word tariffs,” said Judge Jimmie V. Reyna, adding that Congress “certainly was aware about tariffs” when it wrote the law.

Existing laws already create “a highly structured … framework” for tariffs, said Reyna, who was appointed to the bench in 2011 by President Barack Obama. “You would agree with me that those statutes do pertain to tariffs?”

“Correct,” replied Shumate, the assistant attorney general for the Justice Department’s Civil Division.

Pressed again by Reyna on “tariff” not appearing in the statute, Shumate said “I don’t think that’s unusual.”

“There are at least two examples of statutes that authorize tariffs that don’t use the word ‘tariff’ — Sections 232c and 122, which authorize the president to restrict imports,” Shumate said.

Judge Leonard P. Stark, who was appointed in 2022 by President Joe Biden, jumped in with skepticism.

“Both of those are part of the code that deals expressly with customs and duties, unlike IEEPA, which is not in that chapter,” Stark said.

Dependence on deficits probed

The panel also quizzed legal counsel for the businesses and states, including on the weight and content of Trump’s emergency declaration that launched his April 2 “Liberation Day” tariffs.

The states ignored arguments in Trump’s executive order that an emergency existed because of a hollow manufacturing base, a threat to national security, supply-chain disruptions and other issues, Judge Richard G. Taranto said to Gutman, of Oregon.

“Your arguments in your brief to us are devoted to the more narrow question of trade deficits alone as not amounting to unusual and extraordinary threat,” Taranto, who was appointed by Obama in 2013, said.

Gutman replied that all other matters the order cites are related to trade deficits.

“You can look at the executive order itself, the justification, the unusual and extraordinary threat that it is identifying, is what it calls persistent trade deficits,” he said. “Everything else that’s discussed there is either mentioned as a cause or an effect.”

Stark followed up with, “Is that the only fair reading of the executive orders, though? Can it be read as there are some recent consequences, some recent effects of the long and persistent trade deficit that now are unusual and extraordinary?”

Gutman said those effects are mentioned “in about a sentence in the executive order.”

Chief Judge Kimberly A. Moore fact-checked that answer.

The executive order “goes on for paragraph after paragraph,” Moore said, mentioning production capacity, military equipment, national security concerns and other threats to the U.S. economy, she said.

“How could you stand here and say to me that the president said it’s all about the deficit, and it’s one throwaway sentence at most in this whole order about the rest of these things constituting a threat?” Moore, who was appointed by George W. Bush, asked.

After back and forth, Gutman said, “I will walk back that it was a single sentence. But I think if you read this, the fairest reading of this executive order is that it is about the large and persistent trade deficits.”

Debate continues

Oregon Attorney General Dan Rayfield said after oral arguments the U.S. Department of Justice had a “monster flop” during the arguments when at one point Shumate told Moore that the court did not have authority to review the tariffs.

“I think for those in the audience today, they are concerned when the federal government comes in and says that (judges) have absolutely no role to review what the president does under IEEPA. You actually heard laughter in the room,” Rayfield said.

During the White House daily briefing following the arguments, press secretary Karoline Leavitt defended tariffs as a success, citing that the duties have raised $150 billion in revenue since Trump took office.

“Those revenues will skyrocket even further, starting tomorrow, when new reciprocal tariff rates take effect,” Leavitt said.

Tariffs are paid to the U.S. government by American businesses and individuals who purchase foreign goods.

Critics across the spectrum

The case against Trump’s sweeping emergency tariffs has attracted support from various points on the political spectrum.

Democratic members of Congress filed an amicus brief on behalf of the state attorneys general and small businesses arguing the president’s import taxes under IEEPA usurped Congress’ tariff powers and violated the Constitution.

Congress has “explicitly and specifically” delegated tariff-raising powers to the president, but not under IEEPA, according to the lawmakers.

“Unmoored from the structural safeguards Congress built into actual tariff statutes, the President’s unlawful ‘emergency’ tariffs under IEEPA have led to chaos and uncertainty,” the lawmakers wrote.

The libertarian CATO Institute also filed an amicus brief raising several issues with Trump’s emergency tariffs, including that IEEPA contains “no textual support for tariff authority” and that it violates tariff power granted to Congress in the Constitution.

Brent Skorup, legal fellow at the CATO Institute, said it’s hard to predict the outcome of the case and whether a longstanding judicial branch deference to the executive branch will “win out” over a recent trend of skepticism of the president’s plans.

“In some ways I think this case has many analogies to President Biden’s attempt to forgive student loans,” he said in an interview with States Newsroom. “I mean, almost an identical issue — a vague statute, a president using it in a way that had never been used before for an economically major event.”

U.S. consumers bear costs

Economists are cautioning that the costs of the tariffs will fall on the shoulders of U.S. consumers.

The Yale Budget Lab’s most recent estimate shows the overall average effective tariff rate is 18.4%, the highest since 1933. The analysis, released Wednesday, included Trump’s latest trade announcement that he will impose a 25% duty on goods from India.

The overall price level and distributional effects of the tariffs are projected to cost American households roughly $2,400 in 2025 dollars, Budget Lab projected.

The analysis shows tariffs are expected to disproportionately affect clothing and textiles, with the prices of shoes increasing by 40% in the short run.

The Tax Foundation, a right-leaning think tank that advocates for lower taxes, found that Trump’s Aug. 1 tariff regime will affect nearly 75% of imported foods, with products from the European Union seeing the worst of it.

The five food imports that would be most affected, barring any deal changes, include liqueurs and spirits, baked goods, coffee, fish and beer, according to the foundation’s July 28 review.

Economists and some lawmakers also warn that Trump’s constantly evolving tariff policy is perpetuating an air of uncertainty for businesses. 

Sameera Fazili, the deputy director of the National Economic Council during the Biden administration, said the rapid changes are “undermining our economy.”

“You can see it in CEO surveys, where the Conference Board CEO Sentiment Survey for Q2 reported that a quarter of CEOs now plan to cut back on capital investments,” Fazili, now a senior fellow at the liberal think tank the Roosevelt Institute, said Tuesday during a press call organized by the Economic Speakers Bureau.

The same can be said for mid-sized and small businesses, said Republican Sen. Rand Paul of Kentucky.

“When I go home, I’ve yet to come across a businessman or -woman who says, ‘Oh, I love the tariffs.’ It’s the opposite,” Paul said at an event Wednesday at the CATO Institute.

Of the court case, Paul said he thinks the administration is “going to lose.”

“I think there’s a constitutional reason against it,” he said. “And I think there’s, in addition, a statutory reason they may fail.”

Left to right, Secretary of State Marco Rubio, President Donald Trump and Secretary of Defense Pete Hegseth attend a Cabinet meeting at the White House on April 30, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)

WASHINGTON — President Donald Trump’s emergency tariffs can go forward while the administration fights to overturn a lower court’s trade decision that ruled the global import taxes unlawful, according to a U.S. appeals court order late Tuesday.

The two cases filed by a handful of private businesses and a dozen Democratic state attorneys general will be consolidated and heard by a full panel of active circuit court judges in July, according to the four-page order from the U.S. Appeals Court for the Federal Circuit.

Democratic state attorneys general who brought the suit represent Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico and Oregon.

The court “concludes that these cases present issues of exceptional importance warranting expedited en banc consideration of the merits in the first instance,” according to the order.

A hearing is scheduled for July 31 in Washington, D.C.

Trump rocked global markets when he imposed the wide-reaching levies on nearly every country on April 2 under an unprecedented use of the 1977 International Emergency Economic Powers Act, or IEEPA. The president walked them back just seven days later, announcing a 90-day pause on staggering tariffs that reached nearly 50% on some major U.S. trading partners.

The U.S. Court of International Trade struck down Trump’s emergency tariffs May 28. The following day, the appeals court temporarily restored the tariffs.