The United States Court of International Trade issued an injunction on four executive orders that called upon various national emergencies to enact tariffs on Canada, China and Mexico, and a 10% global tariff plus additional reciprocal tariffs. The injunction called for the government to stop any operations related to those tariff orders, and to issue administrative notices on the permanent injunction within 10 days.

Lawyers representing the Trump administration quickly appealed the decision to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., and have  supporting their case.

The injunction came as the result of several legal cases wherein a few small businesses and several U.S. states filed separate but similar petitions to halt the tariffs, arguing their imposition via the International Emergency Economic Powers Act overstepped presidential powers. The court eventually sided with the plaintiffs and ruled it was appropriate to block the executive orders that imposed the tariffs as a result.

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the court panel’s opinion reads. “The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders.”

Beyond broad tariffs on trading partners, Trump also used the IEEPA as the basis to eliminate the de minimis exemption for imports from China and Hong Kong. The White House plans to end de minimis treatment for other countries’ products under the act, once systems are in place to collect the additional duties. Those changes are now in question, too, as a result of the court’s decision to halt the executive orders that enabled them.

However, tariffs on automobiles, auto parts, steel and aluminum products were not affected by the injunction, as they were implemented under a different trade authority: Section 232 of the Trade Expansion Act. Similarly, any tariffs implemented under Section 301 will remain in place.

Here’s the latest:

• President Donald Trump  for Canadian and Mexican goods covered by the North American trade agreement known as USMCA until April 2.
• About 50% of Mexican imports and 38% of Canadian imports are covered by the trade agreement, according to a White House official.
• Trump is poised to enact “reciprocal tariffs” April 2 on foreign nations that have import taxes on U.S. goods.
• Mexican President Claudia Sheinbaum said  when such reciprocal tariffs come into effect. Canadian Prime Minister Justin Trudeau said his goal remains to get .”
• Thursday’s tariff exceptions excluded those imposed on China. The country is standing tough, saying it’sprepared to fight “any type of war” with the U.S.

Trump’s tariffs will still apply to about 50% of Mexican imports and more than 60% Canadian goods.

The president’s exemptions apply only to goods that are compliant with the United States-Mexico-Canada Agreement, the deal negotiated during Trump’s first term that governs trade in North America.

A White House official told CNBC that only about 50% of Mexican imports and 38% of Canadian imports are USMCA compliant.

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Located in the Salinas Victoria municipality, outside of Monterrey in the state of Neuvo Leon, Mexico, the 700,000-square-foot facility is expected to be operational in 2026. The new factory is expected to create 600 to 800 jobs in the region.

The new location, which was announced in 2023, will expand Bobcat’s existing global footprint to create additional production capacity and manufacturing capabilities for select compact track and skid-steer loader models.

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Deere is also buying land in Ramos, Mexico to build a factory that will take over some of the production currently done in its Dubuque Works facility in Iowa. According to a Yahoo!Finance report, “‘Deere says that ‘when the facility is operational in 2026, production of mid-frame skid steer loaders and compact track loaders will be relocated from Dubuque Works to Ramos.'”

Other layoffs announced include:

• John Deere Des Moines Works, Ankeny, 16 employees
• John Deere Intelligent Solutions, Urbandale, 58 employees
• John Deere Waterloo Works, Waterloo, 49 employees

The company also announced more than 300 layoffs in April.

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In August, the U.S. requested a dispute panel under the North American trade pact, arguing the Mexican decree is not based on science and violates its trade commitments.

“This (case) is about a lot more than biotech corn. It’s about making sure that nations adhere to the provisions of the trade agreements they’ve already signed and making sure we stick to science as the underpinning of trade,” McKalip said at the conference of the National Association of State Departments of Agriculture.

Mexico buys about $5 billion of U.S. GM corn each year, most for livestock feed.

The dispute panel’s members and chair have been selected and arguments before the panel have been scheduled for later in 2024, McKalip said.

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