Trump’s chaotic trade war is creating a havoc on world trade stage
Amid the global trade chaos caused by Trump’s tariff-driven “trade war,” the dry-cleaning industry is facing the daunting prospect of soaring prices. At the CleanShow held in Orlando last August, the common question among all industry participants was: “What will be the impact of Trump’s tariffs?” Moreover, the Trump administration has not presented a clear, organized tariff policy and instead announces additional tariffs almost every month, heightening anxiety due to the uncertainty.
The second Trump administration took office on January 20, 2025, and has been announcing new tariffs almost every month:
- February 1: 25% tariffs on imports from Canada and Mexico; additional 10% on China
- March 4: 25% on Canada/Mexico imports; 20% on China
- April 2: “Liberation Day” tariff package announced; 10% reciprocal tariffs globally, removing exemptions for low-priced Chinese imports
- May 30: Steel and aluminum tariffs raised from 25% to 50%
- June 4: Steel and aluminum tariffs take effect
- July 30: 50% tariff announced on copper products
- August 7: Additional reciprocal tariffs announced for certain countries
- September 26: 100% on imported pharmaceuticals; 25% on imported large trucks; 30% on imported indoor furniture; 50% on imported kitchen and decorative furniture
- September 29: 100% tariff announced on all foreign-registered films
Mr. Euisub Kim, president of Ecotech USA, which imports equipment from Korea, said, “I wish Trump would just finalize whether it’s 25% or 50%. The uncertainty, where tariffs can change at any time, has completely undermined all business strategies.”
Darrin Haiges, vice president of Firbimatic USA, added, “We absorbed half of the initial 15% tariff, but we have no room to absorb further tariffs.”
One equipment supplier sighed, “The price of a 40-pound dry-cleaning machine has exceeded $60,000, which is the most unrealistic reality.”
The “chaotic nature” of Trump’s tariff policy is evident from the remarks of U.S. Trade Representative Jamieson Greer during the ASEAN meeting in Malaysia on September 25. “What we are focused on now are the negotiations, not putting out rounds of tariffs,” Jamieson Greer, the U.S. trade representative, told reporters at a meeting of the Association of Southeast Asian Nations in Kuala Lumpur.
Twelve hours later, Mr. Trump announced the sweeping new tariffs on his social media feed.’
Even though reciprocal tariff negotiations announced in April have not been completed, Trump continues to announce new tariffs. In July, Trump reached a tariff agreement with the European Union, but there has been no agreement with two of Asia’s largest trading partners, China and India. Although the White House announced agreements with Japan and Korea, both of those countries are balking on exactly how to execute the key component of the deal — a combined $900 billion (Japan $550 billion, Korea $350 billion) in investments in the United States.
Another factor hanging over the negotiations is the legal question regarding Trump’s use of emergency economic powers as a legal grounding for some of his tariffs. On August 29, 2025, the U.S. Court of Appeals ruled that President Trump overstepped his authority by broadly imposing tariffs under the International Emergency Economic Powers Act (IEEPA). However, the Supreme Court accepted the Trump administration’s appeal, so the tariffs remain in effect. Supreme Court review is scheduled for the first week of November.
If the Supreme Court upholds the lower court’s ruling, the Trump administration would have to refund all the tariffs collected so far, estimated between $750 billion and $1 trillion, dealing a severe financial blow. Additionally, the administration’s position in trade negotiations would be significantly weakened.
What is the International Emergency Economic Powers Act (IEEPA)?
The International Emergency Economic Powers Act (IEEPA) signed by President Jimmy Carter on December 28, 1977. The law was enacted as part of post-Watergate efforts to limit and more clearly define unilateral presidential powers, which had expanded dramatically over decade. Congress was concerned that presidents were using a World War I-era law, the Trading with the Enemy Act (TWEA), to take extraordinary economic measures in peacetime with little oversight.
- TWEA, originally intended for wartime, was significantly broadened in 1933 by President Franklin D. Roosevelt during the Great Depression. He gained congressional approval to exercise broad economic powers even in peacetime by declaring an economic emergency.
- However, this expansion of unilateral presidential power faced resistance from Congress, which led to the National Emergencies Act (NEA) of 1976. This law ended all existing national emergencies two years after its passage and established procedural requirements for future emergency declarations, including regular reporting to Congress and procedures for terminating a state of emergency.
- Congress also strictly limited the use of TWEA to wartime.
- The final step was the creation of IEEPA in 1977, which established a new, more limited, and procedurally checked set of authorities for the president to use during peacetime emergencies. Unlike TWEA, IEEPA requires the president to consult with and regularly report to Congress on any actions taken under a declared emergency.
The current Trump administration is using IEEPA as the basis for a global trade war without congressional approval. Ironically, the legislative intent of IEEPA was precisely the opposite to prevent unilateral presidential action without consultation with Congress.
