On May 28, 2025, the U.S. Court of International Trade ruled that President Donald Trump exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA). The court determined that the IEEPA does not grant the president unlimited tariff authority and that the U.S. trade deficit does not qualify as an “unusual and extraordinary threat” .
Key Takeaways from the Ruling
- Scope of the Decision: The court’s ruling specifically targets the blanket tariffs introduced under the IEEPA, asserting that only Congress holds the constitutional power to regulate foreign commerce. However, sector-specific tariffs, such as those on steel and automobiles, remain unaffected .
- Economic Impact: The tariffs had significant economic consequences, including a projected 0.8 percentage point reduction in U.S. real GDP growth and a persistent 0.5% smaller economy in the long run, equivalent to $160 billion annually in 2024 dollars .
- Market Response: Financial markets responded positively, with stocks in sectors previously impacted by the tariffs—like semiconductors, banking, and luxury goods—experiencing gains.
What This Means for Shippers and CPG Brands
Short-Term Relief, But No Long-Term Guarantee
With the May 28 ruling, companies have immediate relief from the emergency-based tariffs—but legal appeals or Congressional action could still impact the future tariff environment. Brands should use this time to stabilize pricing, renegotiate supplier terms, and revisit landed cost strategies.
Better Forecasting for Procurement and Inventory
The halt in sweeping tariffs reduces unpredictable spikes in duties, giving procurement teams space to reallocate budgets and stock accordingly. CPG brands in particular may find it easier to lock in contracts without inflationary pressure from customs costs.
Still a Need for Flexible Logistics
Although this ruling may ease certain challenges, ongoing volatility in trade policy and global disruptions means resilient supply chains are more important than ever. Whether through domestic warehousing, multimodal shipping, or strategic cold storage, having the right logistics infrastructure in place remains critical.
How Taylor Helps Navigate Trade Uncertainty
As a full-service 3PL provider, Taylor offers the tools and footprint needed to respond quickly to changes in trade dynamics:
- Warehousing in Key Distribution Hubs Cincinnati and Eastern Pennsylvania offer direct access to major metros and transport lanes—positioning your products closer to customers while avoiding congestion.
- Cold Storage on the East Coast Temperature-controlled storage and handling in FDA- and SQF-certified facilities ensures your perishable goods remain safe, compliant, and market-ready.
- Integrated Freight & Fulfillment Services Whether you’re importing containers or shipping D2C, Taylor’s transportation and fulfillment services are built to scale with your business needs.
In a Trade Environment That’s Always Changing, Flexibility Is Power
Taylor helps shippers and CPG brands adapt—whether you’re recalibrating due to tariffs, growth, or seasonal shifts. From fulfillment to freight, we’re your partner across every node of the supply chain.
