In the early days of September 2025, President Trump signed a consequential executive order aimed at both reshaping the United States’ tariff policy and formalizing how trade and security agreements are implemented. Building upon the sweeping “Liberation Day” tariffs introduced in April, the new order refines their parameters, extends strategic flexibility, and reinforces the administration’s commitment to national economic security.
The updated directive, explicitly framed as an effort to “strengthen the economy and national security”, not only adjusts the scope of reciprocal tariffs but also codifies a streamlined process for engaging with trade partners under shared economic and security objectives.
Key points of the executive order:
Modifies the previous tariff structure to ensure reciprocal trade benefits while safeguarding domestic industries.
Establishes clear procedural channels for negotiating and implementing trade and security agreements with partner nations.
Acts under multiple authorities, including IEEPA, the National Emergencies Act, Section 232 of the Trade Expansion Act, Section 604 of the Trade Act of 1974, and Section 301 of Title 3.
This move comes against a backdrop of legal uncertainty surrounding the tariffs. Though the appeals court verdict struck down the executive’s wide authority under IEEPA, the administration has until mid-October to appeal to the Supreme Court. Meanwhile, the executive order appears crafted to buttress the legal standing of tariff actions and signal a proactive mechanism for responding to unbalanced global trade practices.
With the Supreme Court appeal looming, the new executive order positions the administration to present a more structured and legally nuanced framework for its trade initiatives. Whether this will fortify the administration’s defense or complicate the judicial review remains to be seen.
On August 29, 2025, a federal appeals court ruled 7–4 that President Trump’s emergency-based tariffs were unlawful, finding tariff powers rest with Congress. The court left them in place temporarily, granting the administration time to appeal to the SC.
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