Newsletter | October 2025 | Update: Reciprocal Tariffs

TOP NEWS

The Supreme Court, which resumed on October 6th, has agreed to hear the case in regards to the reciprocal-tariffs (IEEPA), on an expedited basis. Oral arguments have been scheduled for November 5, 2025.

The interpretation of IEEPA (how broadly “regulate importation” is construed) is central. Because the issue at hand is fundamentally constitutional and statutory (delegation of powers, separation of powers, tariff authority), the Supreme Court is a likely—but not guaranteed—venue for final resolution. Critics argue that delegating a broad power to the President to impose tariffs under IEEPA goes beyond permissible delegation. If the Supreme Court affirms that such delegations are impermissible, it could curtail future presidential tariff initiatives using emergency or executive authority.

If the tariffs are struck down, there will be significant questions about refunds: who is eligible, how to claim them, whether the government is required to refund every dollar collected. The Supreme Court’s decision will likely shape the scope of relief. For instance, Treasury Secretary Bessent has warned of $750B–$1T in potential refunds if the tariffs are invalidated.

DID YOU KNOW…

Prior to the government shutdown, President Trump signed a Proclamation imposing new tariffs on timber, furniture and cabinets. The new rates apply to goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. Eastern Daylight Time, October 14, 2025.

Tariff Rates & Effective Dates

Initial Tariff Rates (from Oct 14, 2025):

• Softwood timber & lumber: 10% ad valorem duty 
• Upholstered wooden products: 25% ad valorem duty 
• Kitchen cabinets, vanities, and parts: 25% ad valorem duty
   

January 1, 2026 Increases (unless an agreement is reached):

• Upholstered wooden products: increases from 25% → 30% 
• Cabinets, vanities & parts: increases from 25% → 50%
  

Products subject to this Proclamation shall not be subject to any reciprocal tariffs or tariffs imposed to address issues with Brazil and Russia. The Proclamation further notes the hierarchy for when these timber tariffs will or will not be applied in respect of other already established tariff programs, such as the automobile tariffs.

MORE TARIFF NEWS

Starting November 1, 2025, the U.S. will impose a 25% tariff on all imported medium and heavy duty trucks. This latest move has been framed as a national security/industrial policy measure to protect U.S. domestic manufacturers of heavy trucks. As of now, it is unclear how exemptions or regional trade agreement rules, such as under USMCA, might apply. Canada, as a major supplier of trucks to the U.S., has expressed concerns, and discussions are underway.