MANUFACTURING & INDUSTRIAL: OUTLOOK & TRENDS
As the manufacturing sector continues to navigate a dynamic economic and regulatory landscape, the current environment presents both significant opportunities and complex challenges. From strong buyer demand in a competitive M&A market to shifting tariff policies and increased immigration enforcement, manufacturers must balance growth strategies with careful risk management. At the same time, expanded federal incentives such as New Markets Tax Credits create new avenues for investment, while heightened False Claims Act enforcement and a changing NLRB agenda reshape compliance priorities. Manufacturing & Industrial: Outlook & Trends explores these developments and their impact on dealmaking, workforce readiness, trade compliance, and labor relations. Together, these insights highlight key trends and issues impacting the regulatory and operational landscape for manufacturing and industrial companies and offer guidance on how to remain agile and competitive in a rapidly evolving environment. Tariffs Update: Court Cases Should Clarify What Is, Is Not Permissible Contributors: Thad McBride, Faith Dibble, Tris Sebesta On January 20, in Executive Order 14157, President Trump declared a national emergency under the International Emergency Economic Powers Act (IEEPA) to address threats posed by international cartels. On the same day, he declared a national emergency at the southern border, and expanded that emergency to cover the threat of fentanyl and the “failure” of Canada and China to combat criminals. To respond to these emergencies, Trump imposed tariffs on Canada, China, and Mexico. In April, again acting under the authority of IEEPA, Trump issued Executive Order 14257 to impose a 10% tariff on “all imports from all trading partners” due to trade deficits that created a threat to the “national security and economy of the United States.” He also announced country-specific reciprocal tariffs ranging from 10% to 41% for dozens of countries that went into effect on August 7, though he suspended until November 10 reciprocal tariffs on China.
At least some of these tariffs are now likely to be barred by the courts.
On May 28, in V.O.S. Selections Inc. v. U.S. , the U.S. Court of International Trade (CIT) found that Trump could not use IEEPA as legal authority to implement tariffs absent a clearly substantiated national emergency. (The CIT has sole jurisdiction to handle federal civil cases involving international trade matters.) The CIT also reaffirmed that the tariff power lies with Congress. The Federal Circuit granted the Trump administration’s motion for an administrative stay, which temporarily reinstated the tariffs, and on July 31, the Federal Circuit heard oral arguments in the matter. Similarly, on May 29, in Learning Resources Inc. v. Trump at the U.S. District Court for the District of Columbia (DDC), plaintiffs argued that IEEPA does not authorize the president to “impose, revoke, pause, reinstate, and adjust tariffs…” Although the government sought to have the case transferred to the CIT, the DDC ruled that the CIT does not have jurisdiction because IEEPA does not authorize the President to impose tariffs - a much broader holding than that issued by the CIT the day before. The tariffs are allowed to remain while the government appeals the case. On June 20, the U.S. Supreme Court declined plaintiffs’ petition for expedited review.
1 MANUFACTURING & INDUSTRIAL: OUTLOOK & TRENDS |
Powered by FlippingBook