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Yahoo
5 days ago
- Business
- Yahoo
Appeals court halts trade court's tariff injunction: What it means for freight
By Matthew Leffler The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates. In a seismic ruling on Wednesday, the United States Court of International Trade (CIT) delivered a stinging defeat to President Donald Trump's aggressive tariff policies, striking down a series of import duties imposed under the International Emergency Economic Powers Act (IEEPA). The cases, V.O.S. Selections, Inc. v. United States and Oregon v. United States, challenged Trump's Worldwide, Retaliatory and Trafficking Tariffs, which slapped duties as high as 25% on goods from Canada, Mexico and China, and 10% globally. The CIT's decision, calling the tariffs an unconstitutional overreach, has sent shockwaves through the freight forwarding, trucking and logistics sectors. Here's what happened, why it matters and what's next for global trade. Since taking office in January, Trump has leaned heavily on tariffs to address trade deficits and drug trafficking, invoking IEEPA — a 1977 law granting presidents emergency economic powers — to bypass Congress. The Worldwide and Retaliatory Tariffs, rolled out via Executive Order 14257 in April, imposed a 10% duty on all imports, with higher rates (up to 50%) targeting 25 countries, including a tit-for-tat escalation with China peaking at 125% before settling at 20%. The Trafficking Tariffs, launched in February, hit Canada and Mexico with 25% duties and China with 20%, ostensibly to pressure those nations to curb drug tariffs disrupted supply chains, jacked up costs for importers and sparked fears of retaliatory trade barriers. V.O.S. Selections, a group of small businesses, and a coalition of 12 states led by Oregon, argued the tariffs were an illegal power grab, violating IEEPA's limits and Congress' exclusive authority over commerce under Article I of the Constitution. The CIT agreed, handing plaintiffs a clean sweep on summary judgment. The CIT's 49-page opinion, authored by a three-judge panel, dismantled the tariffs on two fronts. First, it ruled that the Worldwide and Retaliatory Tariffs, aimed at fixing trade deficits, fell under the Trade Act of 1974's Section 122, which caps tariffs at 15% for 150 days to address balance-of-payments issues. Trump's open-ended, globe-spanning duties blew past those limits, rendering them 'ultra vires' (beyond legal authority). The court noted that IEEPA, while allowing the president to 'regulate importation' during emergencies, doesn't override specific trade laws like Section 122, especially after Congress tightened IEEPA in 1977 to curb executive overreach. Second, the Trafficking Tariffs flunked IEEPA's requirement that actions 'deal with' an 'unusual and extraordinary threat' (50 U.S.C. § 1701). The court found the tariffs, which blanket entire economies rather than targeting trafficking networks, were more about creating 'leverage' than directly addressing the drug crisis. 'Customs's collection of tariffs on lawful imports does not evidently relate to foreign governments' efforts 'to arrest, seize, detain, or otherwise intercept' bad actors,' the court wrote, rejecting the government's argument that economic pressure alone satisfies IEEPA. Crucially, the CIT rejected the government's claim that the tariffs were immune from review under the political question doctrine. The court held that interpreting IEEPA's statutory limits is a judicial task, not a blank check for the president. Citing Youngstown Sheet & Tube Co. v. Sawyer (1952), the court emphasized that executive actions incompatible with Congress' will are at their 'lowest ebb' of freight forwarders, truckers and logistics providers, the ruling is a short-term win. The tariffs, which spiked costs for imported goods like Canadian potash, Mexican auto parts and Chinese electronics, strained cash flow for businesses like V.O.S. Selections, which reported reduced inventory and canceled orders. Genova Pipe, another plaintiff, faced higher raw material costs, while MicroKits warned it might shutter without relief. The CIT's permanent injunction, effective immediately, halts these duties, easing pressure on supply chains already battered by a protracted freight recession. But don't pop the champagne yet. The ruling invites appeal to the Federal Circuit and eventually the Supreme Court, where the administration could argue for broader IEEPA powers. Trump's trade team, led by U.S. Trade Representative Jamieson Greer, may also pivot to narrower tariff schemes under Section 301 or Section 232, which allow duties for unfair trade practices or national security threats but require rigorous investigations. Retaliatory tariffs from trading partners, like China's response to the Retaliatory Tariffs, could linger, complicating cross-border freight. The CIT's decision is a wake-up call for Trump's trade agenda. By leaning on IEEPA, the administration sidestepped the procedural hurdles of trade statutes, betting on emergency powers to reshape global commerce. The court's rebuke underscores that Congress, not the president, holds the reins on tariffs — a principle rooted in the Constitution's commerce clause. For shippers, the ruling means lower import costs for now, but vigilance is key. Canada and Mexico, vital U.S. trade partners under the United States-Mexico-Canada Agreement, may push for exemptions or trade concessions, impacting trucking routes and border wait times. China's role as a manufacturing hub ensures its goods will remain a flashpoint, with or without tariffs. Freight forwarders should brace for volatility as the administration recalibrates. Longer term, the case could prompt Congress to tighten IEEPA further, echoing post-Watergate reforms that curbed executive power. Until then, the freight industry must navigate a trade landscape where legal battles are as critical as load boards. As one plaintiff, Terry Cycling, put it, these tariffs cost them $25,000 in unplanned duties this year alone. For an industry running on thin margins, that's a hit nobody can afford. On May 29, 2025, the United States Court of Appeals for the Federal Circuit issued a nonprecedential order consolidating two appeals from the United States Court of International Trade, where judgments were entered against the United States. The Federal Circuit granted the United States' motion to consolidate the appeals, requiring a single set of briefs, and issued a temporary administrative stay of the Court of International Trade's judgments and injunctions pending further consideration of the United States' stay motions. Looks like tariffs are back on the menu. The plaintiffs were directed to respond to the stay motions by June 5, 2025, with the United States permitted to file a consolidated reply by June 9, 2025, and the parties were instructed to inform the court of any actions taken by the Court of International Trade regarding the pending stay motions. Make no mistake, the outcome of this case will be decided before the Supreme Court of the United States. This is a (quickly) developing case. Matthew Leffler is a trucking industry expert and an adjunct professor of law at Michigan State University College of Law. He can be reached at matthew@ faces federal lawsuit over broker transparency dispute The courts are unlikely to end the trade war Court blocks Trump's 'Liberation Day' tariffs, calls them unconstitutional The post Appeals court halts trade court's tariff injunction: What it means for freight appeared first on FreightWaves.
Yahoo
20-02-2025
- Business
- Yahoo
What the truck is going on with plane crashes?
Welcome to the WHAT THE TRUCK?!? Newsletter. In this issue: plane crashes, Nikola's bankruptcy and more. Up in the air X Delta turns air travel upside down — When I boarded my flight from Atlanta to Chattanooga, Tennessee, Wednesday afternoon, one of my Delta pilots announced over the intercom that our flight was being flown by Air Force and Marine veterans. Curious timing in light of recent crashes, including a Delta CRJ-900 jet, operated by Endeavor Air, which crashed while landing at Toronto Pearson Airport on Monday. In fact, I was reading about this story while stuck on the tarmac in Atlanta for an hour due to a lack of air traffic controllers in the Jacksonville and Orlando, Florida, area. Of the four Delta flights I took between Monday and Wednesday traveling from Chattanooga to Orlando through Atlanta, that was the only one to have the pilots list their credentials.X Miraculously, nobody died in that plane crash, but the Atlanta-based mega airline is already getting ahead of legal action. According to Fox Business, 'Delta Air Lines confirmed the plans to provide $30,000 to each victim – 76 passengers and 4 crew members.' A Delta spokesperson has said that the offer 'has no strings attached and does not affect rights.' X I asked my good friend and industry attorney Matthew Leffler what he'd do were he on that flight or representing someone on it. (Note that this is not legal advice; consult your own attorney.) X I polled my audience to see what they'd do. 37.8% of X users and 46% of LinkedIn users said they'd take the money and move on. But, with no strings attached, many said they'd prefer to do both. 62.2% of you on X and 54% on LinkedIn said they're calling their lawyer. NTSB It may seem like an abnormal number of plane crashes have been happening across North America this year even though National Transportation Safety Board crash data is down. Here are a few of the most notable: Sixty-seven people died in January when a Black Hawk helicopter crashed into an American Airlines-affiliated commercial jet. A pilot was killed when Motley Crue singer Vince Neil's private jet crashed into a plane upon landing in Arizona.A medical transport jet with a child patient, her mother and four others aboard crashed into a Philadelphia neighborhood on Jan. 31. The crash killed all 6 on board as well as a father who was in his car on the this month, a commuter plane crash in Alaska killed 10 people on board. Small planes crash all the time, but commercial airline crashes are a whole other story. In fact, there had been no major U.S. commercial passenger airline crashes with fatalities between Feb. 12, 2009 (Colgan Air Flight 3407, 50 deaths), and Jan. 29, 2025 (the Black Hawk collision). IMDB Hell, when pilots Chesley 'Sully' Sullenberger and Jeffrey Skiles landed on the Hudson River in January 2009, they made a movie about it. That's how rare commercial crashes are. Two high-profile ones happening within weeks is sure to get the public's blood pressure up. While selection bias and reporting may be bringing more attention to this despite all crashes being down, the involvement of commercial airliners is the outlier that is demanding the public's attention. SONAR How is this hitting freight? FreightWaves reports, 'Parcel and air cargo customers are experiencing shipping delays in parts of North America because of winter storms and Monday's crash of a Delta Air Lines regional jet at the Toronto airport.'FedEx has warned of delays due to snow at its hub in Memphis, Tennessee, while UPS has been contending with its own storm and flooding in Kentucky. Tomorrow on WHAT THE TRUCK?!?, we'll get much deeper into this story with AirlineGeeks founder Ryan Ewing. The Ballad of Nikola FreightWaves On Sept. 10, 2020, Hindenburg Research dropped a nuclear bombshell on Nikola Motors. Hindenburg's report, 'Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America,' set in motion the conviction of Nikola founder Trevor Milton and caused the company's stock to fall into a death spiral. At its five-year peak, it was valued at $1,977 a share. Today it trades for 46 cents. Wednesday, the company filed for Chapter 11 bankruptcy. Google Speaking of Trevor Milton, the embittered founder and convicted felon has returned to the same place he got in trouble for saying too much in the past: social posted to X, 'We owned all of our assets, we were ahead and built the first production intent trucks in the united states and later delivered the first trucks in production.' X He even claims the Badger was a real thing. What he doesn't mention is that truck they were showcasing and allegedly rolled down a hill for an ad isn't what they brought to market. X What Nikola did bring to market were Iveco trucks, which they rebranded as the Nikola Tre and sold with their own battery electric and hydrogen technology. I've been in a few and to Nikola's credit, I know of several fleets that use their trucks every day. In fact, I did a documentary with Talon that included their fuel cell electric vehicle. We even took it to a HYLA station to see it refuel. Coyote Container's William Hall recently shared his experience owning a Nikola Tre FCEV with us on WHAT THE TRUCK?!? Wednesday, he reacted to the news on LinkedIn. LinkedIn I'm not sure what pathway current Nikola owners will have to keep their trucks serviced and if there is even a market to sell them into without taking a massive bath. It's a tough situation for fleets that listened to government regulations that were forced upon them. X Hall had reported a number of issues with his Nikola over the past year. Now that they're in bankruptcy, holding on to one could be a real liability considering few will be able to properly service news of Nikola's elongated downfall, and EV trucks in general presenting underwhelming solutions with poor infrastructure, why are we forcing fleets and dealers to support this market and assume such risk? In Massachusetts, where the prospect of owning an EV semi is far less attractive than in sunny SoCal, heavy-duty truck dealers say EV requirements are hurting business. Despite dealers and fleets trying to talk sense to regulators, Jason Mathers with the Environmental Defense Fund told WBZ News, 'I think there is an urgent need right, given the human health impacts for addressing diesel pollution, and I would say, the technology is ready, and it's getting better every day.' That is true, if we completely ignore that companies like Nikola are going bankrupt and dealers can't sell units as the infrastructure and application for these trucks are not mature Preston, vice president of Peterbilt Stores New England, told WBZ, 'We really don't have the infrastructure in place to be able to accommodate that. Plus, we're very limited in the applications that we have for electric trucks so it really restricts what we can do.' LinkedIn WattEV did finally get one Tesla Semi, so there's that. Sound off. What do you think: Are you planning on investing in EVs, or are you sticking this one out as long as you can? Email me here. Meme of the week X WTT Friday Mid-America Trucking Show preview; WHAT THE TRUCK is up with plane crashes – Friday on WHAT THE TRUCK?!?, I'm catching up with Mid-America Trucking Show event organizer Toby Young! We'll find out what's going to go down when over 50,000 truckers and industry professionals descend upon Kentucky next month. Supertrucker Justin Martin returns to the show to talk about trucking's biggest and most controversial issues, like immigration hiring by fleets, cleaning snow off a trailer, parking and more. What the truck is up with all these plane crashes? AirlineGeeks founder Ryan Ewing tells us everything we need to know about what's going wrong with these commercial airline crashes. Plus, all the latest headlines, trends and viral weirdness since our last new shows live at noon EST Mondays, Wednesdays and Fridays on FreightWaves LinkedIn, Facebook, X or YouTube, or on demand by looking up WHAT THE TRUCK?!? on your favorite podcast player and at 5 p.m. Eastern on SiriusXM's Road Dog Trucking Channel MAKE AMERICA FREIGHT AGAIN – We are so back. Head on over to to get our newest merch! Use code WTTFans for 10% off. Now on demand Check this out Small carriers and owner-operators often struggle with fragmented, outdated or wrong information. That's where The Playbook comes in. Built by Adam Wingfield — a 22-year trucking industry veteran — it's the comprehensive resource you've been waiting for. Why The Playbook?After years of seeing small carriers struggle, Wingfield teamed up with FreightWaves to create a structured, fact-based guide to succeed in trucking. The Playbook is not just another content hub — it's a one-stop resource for success. What's Inside? Roadmap Digital Learning Hub: Step-by-step courses and training on compliance, finance, operations and sales. Masterclass: Biweekly sessions diving deep into the key areas of trucking business growth. The Long Haul Podcast: Hear from industry experts on growing your trucking business. Partner Portal: Connect with vetted industry partners and grow your business efficiently. Small Carrier Market Update: Stay ahead with real-time freight trends and insights. Tools & Templates: Access spreadsheets, calculators and contract templates. Why FreightWaves?FreightWaves brings industry-leading data and analytics to the table, ensuring you get the same insights larger carriers rely on. The Playbook's MissionIt's not just a project — it's a movement to ensure small carriers thrive in an industry where knowledge is power. Sign up for the weekly Playbook newsletter here. The rest of the noise Port of Los Angeles sees record January volume Federal Maritime Commission dropping DEI from strategic plan Trucking braces for immigration crackdowns Trucking groups praise DOT termination of NY congestion tolls Thanks for reading, and feel free to forward this to a friend. Tweet @ Dooner Email me Subscribe to the newsletter Subscribe to the show Apple Podcasts Spotify YouTube TikTok Twitter Or simply look up WHAT THE TRUCK?!? on your favorite podcast player. Or, if you have SiriusXM, tune in to the show Monday, Wednesday and Friday at 5 p.m. Eastern time on Road Dog Trucking Channel 146. Exit through the gift shop: Don't be a stranger, Dooner The post What the truck is going on with plane crashes? appeared first on FreightWaves.
