Why it Matters

A Senate Finance Committee hearing on the president's trade policy agenda on July 22 comes as U.S. trade policy undergoes significant legal and diplomatic changes. The Supreme Court's February ruling holding that the International Emergency Economic Powers Act does not authorize the president to impose tariffs has reshaped the administration's trade authority.

At the same time, major trade agreements are taking effect, including a U.S.-European Union agreement establishing a 15% tariff on most EU goods entering the United States while eliminating EU tariffs on U.S. industrial exports. This also comes on the heels of President Trump slapping 50% tariffs on certain Canadian goods, including electrical equipment and machinery on Monday. These are among the steepest tariffs his administration has levied against any country.

Meanwhile, the U.S.-Mexico-Canada Agreement joint review is underway, with the Congressional Research Service noting the process could result in the revision or termination of the agreement. The hearing will examine how the Trump administration is navigating those legal and policy developments.

The Landscape

The hearing comes after the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the president to impose tariffs, vacating tariffs imposed under that statute.

New trade agreements are also reshaping U.S. policy. The U.S.-EU trade agreement, which entered into force in July, establishes a 15% tariff on most EU goods entering the United States without stacking additional duties, while U.S. industrial goods enter the European Union duty-free.

The U.S.-China trade agreement reached in October 2025 is described in the Office of the U.S. Trade Representative's Trade Policy Agenda as an initial step toward improving management of bilateral trade relations.

Ongoing Negotiations

On July 21, U.S. and Mexican officials convened in Mexico City for the third bilateral negotiating round of the USMCA joint review. The Congressional Research Service has noted that the review process could ultimately result in revisions to the agreement or its termination if the parties fail to reach consensus.

Trade compliance challenges continue to expand beyond tariffs. Mayer Brown's July U.S.-China Trade Monthly notes that businesses increasingly face overlapping risks involving tariffs, export controls, sanctions and customs enforcement, underscoring the complexity of managing cross-border trade.

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