The U.S. Court of Appeals for the Federal Circuit ruled Friday that many of President Donald Trump’s global tariffs on imports are not legal and that he does not have unlimited authority to impose taxes on all countries. Since entering office, Trump has threatened and executed a flurry of tariffs on many countries as part of his aggressive trade policy. Walking them back would represent significant ramifications and possible alleviations for those feeling pricing pressures within the global supply chain.
- However, any enforcement of this ruling is delayed until October 14, meaning the tariffs will remain in place for now, presumably anticipating an appeal to the U.S. Supreme Court.
- Friday’s ruling was an affirmation of a ruling back in May by a lower court that came to a similar conclusion.
Trump’s administration has repeatedly invoked the International Emergency Economic Powers Act to defend the tariffs, but the act has never been used in such a way, leaving its credibility in this case up for interpretation and debate.
After the ruling, Trump took to social media to post, among other things, “If these Tariffs ever went away, it would be a total disaster for the Country.” He then later posted, “In many ways, we would become a Third World Nation, with no hope of GREATNESS again.”
- Some experts assume that the U.S. government would have to pay back billions of dollars in taxes that were already collected in tariffs if they’re proactively deemed illegal.
Promo Perspective
This weekend’s news represents a familiar trade theme in 2025: a huge development leading to more uncertainty.
“While many American businesses would welcome relief from these levies, the appeals court ruling leaves the tariffs in place until mid-October while the administration appeals,” says Rachel Zoch, public affairs manager at PPAI. “This only prolongs the uncertainty.
Rachel Zoch
Public Affairs Manager
“It’s also important to note that the ruling does not affect the specific tariffs on steel and aluminum, which affect promo categories from drinkware to signage.”
From a supply chain standpoint, promo firms are once again in a “hurry up and wait” situation. It is not clear how a theoretical Supreme Court ruling would go and therefore it is likely unwise to make any drastic plans based on the weekend’s news.
Back in May, after the lower courts made a similar ruling, PPAI Board Chair Denise Taschereau, CEO of Canadian distributor Fairware Promotional Products, told PPAI Media that while the court’s decision might offer short-term relief, the reality is that tariff uncertainty is here to stay – at least for the foreseeable future.
“As a Canadian distributor, we’ve learned to adapt to this new ‘usual,’ where pricing volatility and shifting trade policies are part of our everyday risk management,” Taschereau said. “We’ll continue to work closely with our supplier partners to mitigate disruptions and deliver great merch to our clients.”
Denise Taschereau
CEO, Fairware
Joseph Sommer, founder and CEO of Whitestone, the No. 34 distributor in the 2025 PPAI 100, reacted in May with just as many questions as answers. If the tariffs were to truly go away, it would be a victory, for small businesses, he says, but there would still be plenty to sort out.
“And for those of us who have already paid the tariffs… What now? Will there be refunds? Credits? We’re watching closely for next steps and will continue to stay informed so we can guide our clients with clarity,” Sommer said.
End Of De Minimis
Also on Friday, the U.S. ended the de minimis loophole for low-value packages shipped from all countries, which has led to several postal services from around the world suspending shipments to the U.S. due to confusion over new import duties.
As a result of ending the de minimis exemption, any items shipped through the international postal network will be subject to tariff rates based on the value of the package and its country of origin.
Ending the exemption is expected to have a significant impact on the promotional products industry, according to Alok Bhat, market economist, research and public affairs lead at PPAI.
“The industry relies on global supply chains to deliver affordable, customized products across business, education, healthcare and community initiatives,” Bhat says. “Without de minimis, small, low-value shipments will face additional fees, customs delays and more paperwork.
Alok Bhat
Market Economist, Research & Public Affairs Lead, PPAI
“Disruptions are already emerging. Postal services in countries including Australia, India, UK, Germany and Austria have suspended shipments to the U.S. due to uncertainty around the new rules. That means orders many businesses depend on may be delayed or may not arrive at all. For companies of every size, these changes could raise costs, complicate timelines and limit access to branded products.
For small businesses in particular, it may mean the difference between taking part in programs or being priced out.”
What Are Current Tariff Rates?
On April 2, Trump officially invoked a national emergency under the International Emergency Economic Powers Act, citing persistent U.S. trade deficits and associated economic impacts as justification to authorize new tariffs intended to address non-reciprocal trade practices and protect critical supply chains. The ensuing policies have changed rapidly and repeatedly since then, leaving business leaders wondering what the current rules are.
The document below, prepared by PPAI’s advocacy firm, Thorn Run Partners, provides a comprehensive A-Z list of the duties levied on each nation, including the current rate and a link to any exceptions. The document also includes information on tariffs for specific materials like steel and aluminum and an explanation of tariff stacking, which occurs when multiple tariffs apply to the same import, creating a cumulative rate that can significantly raise costs.
Read or download the full document below:
