On August 29, a U.S. Court of Appeals for the Federal Circuit ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the president’s authority and were issued illegally.

The IEEPA allows the president to declare a national emergency to address “unusual and extraordinary” threats to the nation’s security, foreign policy, or economy. The court, however, found that the IEEPA does not grant the authority to impose tariffs.

Key points:

• The affected tariffs remain in place until October 14, which gives time for the government to appeal the ruling to the U.S. Supreme Court.
• The ruling would affect the so-called “reciprocal” tariffs levied on most countries and the special tariff rates imposed on (non-United States–Mexico–Canada Agreement (USMCA)-compliant) Canadian, Mexican, and Chinese goods.
• The ruling does not affect tariffs imposed under Section 232 of the Trade Expansion Act, which includes tariffs imposed on aluminum, steel, and their derivative products.

The Brewers Association will continue monitoring the situation and bring you the latest news as it develops.