2025 Regulatory Summit

Tariffs and Presidential Authority

• Trafficking Tariffs: Duties on imports from Canada, Mexico, and China — justified by alleged national security risks (immigration, opioids). • Reciprocal Tariffs: Duties imposed under a “national emergency” tied to the trade deficit. • Federal Circuit (en banc): President exceeded authority under IEEPA. – IEEPA allows regulation of imports to address “extraordinary threats” — but does not mention tariffs. – Other statutes that grant tariff power use the word “tariffs” explicitly

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Tariff Impact on Banks

• If the Supreme Court confirms the tariffs were unlawful, the government could be liable for massive duty refunds, including interest, to importers. • Direct Impacts on Banks – Tariffs affect banks indirectly through their role as business operators. – Impacts customer credit profiles. – Credit line uncertainty. – Tariff volatility demands change management. • Bottom line: tariffs create uncertainty.

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