Tariffs imposed by Trump continue amidst legal struggle, White House guarantees implementation of measures despite challenges
3:05 AM (ET): In a shocking turn of events, the White House has filed an appeal with the federal appeals court after a U.S. trade court declared President Trump's sweeping tariffs unlawful. As reported by the BBC, the court ruled that the emergency law used to pass the tariffs does not give the President the authority to impose such widespread measures.
But here's the twist - the tariffs remain in force while the case continues, with the next hearing set for June 5. It seems the administration is confident about their chances, with Peter Navarro stating that even if they lose in court, they'll find another way to implement the tariffs.
The court's ruling, dated May 28, states that the Trump-imposed tariffs on nations like China are invalid because the International Emergency Economic Powers Act (IEEPA) does not grant the President unilateral power to impose such sweeping tariffs. To be precise, the Worldwide and Retaliatory Tariff orders exceeded any authority granted to the President by the IEEPA for regulating imports via tariffs.
Regarding Trafficking Tariffs, the court found that they fail to address the threats outlined in the orders, rendering them null and void.
The White House has vowed to appeal the decision, and if successful, the tariffs could remain in effect, potentially hiking up tech prices by as much as 70%. This could be a significant blow to suppliers of hardware, especially the semiconductor industry, and component parts manufacturers like GPUs.
Recent reports suggest that companies like Nvidia and TSMC have already raised prices to combat rising manufacturing costs and tariffs. In response to a call for public comments, TSMC urged the government to drop tariffs on semiconductors made outside the U.S., arguing that tariffs raise the cost of end-consumer products and lower demand for them and their components.
So, buckle up folks, it seems we're in for a bumpy ride!
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Sources:1. CNET2. BBC3. NY Times
- Amidst this political storm, the ongoing dispute between the White House and the federal appeals court over policy-and-legislation regarding President Trump's tariffs raises questions about the future of trade politics.
- The recent court ruling on policy-and-legislation concerning tariffs, particularly those associated with the semiconductor industry, has general-news outlets closely monitoring its impact on tech prices and the hardware manufacturing sector.
