The decision of the International Trade Court, released on May 7, considers that US President Donald Trump “incorrectly” invoked tariffs based on section 122 of the Trade Act of 1974, since this provision only allows the temporary imposition of limited tariffs, in specific circumstances linked to serious imbalances in the balance of payments or to situations of instability in the international financial system, as reported by EFE and international media.
The tax was established for a period of 150 days starting on February 24, 2026, after the Supreme Court of that country suspended the first package of tariffs implemented since April of last year.
What scope does it have for Guatemala?
In this regard, Prensa Libre consulted the version of the Ministry of Economy (Mineco) and the Guatemalan Association of Exporters (Agexport). Mineco has not yet responded specifically to the scope of the Court’s new decision.
Meanwhile, the Guatemalan Association of Exporters (Agexport) explained that the International Trade Court issued a mandate with which it resolved that the application of the 10% tariff under Section 122 does not apply, but only and specifically for the plaintiffs participating in the case, such as University of Washington, Burlap and Barrel, Inc. and Basic Fun, Inc.
The court decision grants an order in favor of said parties, but does not constitute a universal suspension for all importers in the United States, indicated Aída Fernández, director of export growth at Agexport, through the communication office of this association.
Taking this scope into account, this resolution should not be interpreted as the elimination of the 10% tariff for imports from Guatemala and, as it is not a universal order, the effect is limited to the plaintiffs favored by that Court, according to the executive.
In a communication, which was also addressed to the partners, it is indicated that without an administrative instruction from the US customs authority, a judicial expansion of the scope or an official modification from the US Government, it continues under the same tariff framework subject to the current regulations, which to date is Section 122, implemented through Proclamation 11012.
These tariffs came into effect on February 24 but also include exemptions. With this, as announced in February by Mineco, around 72% of Guatemalan exports are exempt, so the remaining 28% continue to pay tariffs to be imported into the United States.
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The validity period of this is until July 24, 2026, “unless it is suspended, modified, terminated early or extended by the US Congress,” added Agexport.
In the case of the Reciprocal Trade Agreement signed between Guatemala and the United States, Agexport states that the current framework between both countries is not annulled or modified by this judicial decision.
The agreement, on the part of Guatemala, has already been ratified by the President of the Republic and notified to the USTR and other US authorities, as indicated by the government last March.
“This decision (of the Court) specifically refers to the tariff under Section 122 and does not eliminate other trade mechanisms,” says Agexport, explaining that with this, other measures such as Section 232 remain in force, with which trade measures have been imposed in sectors such as steel, aluminum and other products. Specific tariffs have been established for these goods, including those imported from Guatemala.
The investigation also continues under Section 301, used to evaluate business practices considered discriminatory or restrictive.
Guatemala, as announced last March, was included in a list of 60 countries in which the Office of the United States Trade Representative (USTR) initiated investigations based on Section 301(b) of the Trade Act of 1974, in relation to the issue of forced labor, according to information from this US entity.