On April 2, 2025, the White House imposed a variety of new tariffs, from a universal baseline tariff to nation, product, and commodity specific duties (Executive Order).

On Wednesday, May 28, a three-judge panel at the U.S. Court of International Trade (USCIT) in New York ruled that the Trump Administration exceeded its Executive Branch authority under the International Emergency Economic Powers Act (IEEPA) to implement a 30% tariff on China, 25% tariff on certain goods from Mexico and Canada, and 10% universal base-line duties for the majority of U.S. trading partners. The court ordered that four of the President’s Executive Orders in relation the Administration’s tariff policies are invalid and must be repealed. The Administration’s 25% steel, aluminum, and auto tariffs, however, remain in effect.

Minutes after the USCIT ruling, the Trump Administration filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. The case may also later be appealed to the Supreme Court.

What You Need to Know:

• There is a 10% "reciprocal" baseline tariff. These are across-the-board levies on all imports, effective April 5, 2025. 
• On April 9, the Trump Administration announced a 90-day pause on a proposed “discounted reciprocal tariff” set to affect 57 nations. These tariffs, targeting countries identified by the White House as engaging in unfavorable trade practices, included rates such as 24% on Japan and 20% on the European Union. The pause allows for ongoing negotiations between the Administration and the affected countries to address trade concerns.
• Following waves of initial and retaliatory tariffs between the U.S. and China, the rate on most imports from China escalated to 145% when accounting for IEEPA border security and fentanyl tariffs. China retaliated with their own duties on U.S. imports with a 125% rate effective April 11. On May 12, 2025, the U.S. and China agreed to reduce reciprocal tariffs by 115%, setting most Chinese imports to the U.S. at 30% and U.S. exports to China at 10% for a 90-day period. Ongoing negotiations will address non-tariff barriers to Chinese markets, focusing on currency manipulation and the illicit drug trade.
• On May 8, the Trump Administration announced its first major trade deal with the United Kingdom with specific tariff reductions for ease of market access to beef, ethanol, steel, aluminum, and autos. However, the 10% baseline duty remains in effect. 
• Canada and Mexico are exempt from the proposed reciprocal tariff regime. However, most imports from these countries face a 25% tariff due to concerns raised by President Trump regarding their roles in the fentanyl crisis and illegal immigration. Compliant goods covered under the United States-Mexico-Canada Agreement (USMCA) remain eligible for exemptions.
• Trump’s 25% tariffs on foreign-made automobiles took effect April 3, 2025. Auto parts are included in this 25% rate effective May 3. 
• President Trump’s Administration is considering or discussing the inclusion of copper, lumber, pharmaceuticals, and semiconductors in the evolving tariff policies.
• The Tax Foundation maintains a Trump Administration tariff timeline and further details regarding their economic effects.

• The U.S. Chamber of Commerce provides further context of how broad-based tariffs put U.S. growth at risk.

​Commerce Lexington's policy team is committed to keeping you informed as tariff policies continue to develop. 

​Commerce Lexington’s Leadership Visit trip to Madison, Wisconsin (May 14-16) presented by Central Bank & Trust Co. included a delegation of 160-plus regional business, education, government, and nonprofit leaders. The group kicked off the agenda on May 14 at The Pyle Center Alumni Lounge on the campus of the University of Wisconsin - Madison. After a brief welcome, the delegation heard from Jason Ilstrup, President of Downtown Madison Inc., Lexington Mayor Linda Gorton, and Madison Mayor Satya Rhodes-Conway.  Day one sessions concluded with a higher education discussion featuring University of Kentucky President Dr. Eli Capilouto and Dr. Jennifer Mnookin, Chancellor of the University of Wisconsin - Madison.

Last week, the U.S. House voted by a narrow margin of 215-214 to pass H.R.1 – One Big Beautiful Bill Act, the top legislative priority of the Trump Administration and Congressional Republicans in 2025. This legislation is a critical pro-growth initiative that would make the 2017 tax extenders and reforms permanent. While it reduces federal expenditures by $1.6 trillion, the Penn Wharton Budget Model estimates it would increase the federal deficit by $3.2 trillion over the next decade, excluding potential economic growth and tariff revenue impacts.

The One Big Beautiful Bill proposes extending key provisions of the 2017 Tax Cuts and Jobs Act (TCJA), including individual, estate, business, and international tax measures. These permanent tax relief provisions aim to promote economic prosperity and stability for American workers and businesses. In addition, The bill eliminates or substantially limits several tax credits designed to encourage investment and production of clean energy, alternative fuels, and electric vehicles. A number of these credits were created or expanded under the Inflation Reduction Act of 2021.
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The bill proposes a reduction in federal deficit spending with direction from specific U.S. House Committees to cut expenses or increase non-tax revenues. It recommends approximately $900 billion in reductions to Medicaid by reforming work and eligibility requirements for able-bodied adults, $290 billion from the Supplemental Nutrition Assistance Program (SNAP) through state and eligibility reforms, and $350 billion from federal student loan and grant programs.

The One Big Beautiful bill now heads to the U.S. Senate for consideration and debate, with anticipated amendments expected over the summer.

​While county lines serve as boundaries for governments, business and economies continue to expand across those lines and impact other areas.  Leadership Central Kentucky is a regional leadership development program that aims to provide participants with leadership development and opportunities to build relationships, gain an understanding of issues facing the region, and increase community awareness.
 
Its vision seeks to build a network of committed, informed and progressive citizens connected across institutions and county lines. These leaders embrace and embody the philosophy that our region will realize its highest potential through working together. The class selection is made by the Leadership Central Kentucky Board of Directors, which seeks to put together a diverse class – professionally, geographically, ethnically and gender-wise. Approximately 25 to 30 individuals will be selected to participate in the program. Preference will be given to individuals who have successfully completed a local leadership program.

Commerce Lexington Inc. is pleased to announce that Caitlyn Maynard recently joined its team as Leadership Program and Event Coordinator. She will assist the organization’s leadership development initiatives and event programming by providing administrative, logistical, and communications support for Leadership Lexington, Leadership Central Kentucky, Emerging Leaders of the Bluegrass, and the annual EMERGE Conference. Caitlyn will also assist in the planning and management of Commerce Lexington’s diverse events, helping to create meaningful engagement opportunities for members and the business community.

Commerce Lexington’s Chief of Staff, Lynda Bebrowsky, said, “We are excited to have Caitlyn on board to support our leadership programs and a variety of events.  She is well versed in the events area, from coordination to logistics to marketing, and even digital content and communications to promote and increase visibility of our initiatives. She has a strong ambition to give back to the community, and we look forward to getting her more involved in a number of areas.”

Caitlyn has extensive experience in marketing and event coordination through previous roles with Bella Notte Restaurant Group, Quality First Auto Care, Whiskey Bear Bar & Craft Kitchen, and Nelson Lee Tree Farm. She earned a Bachelor of Business Administration, Marketing degree from Eastern Kentucky University, along with an Associate of Arts degree from Bluegrass Community and Technical College (BCTC).