Breaking News: Trump's Tariffs Reinstated Temporarily
Tariffs imposed by Trump will continue pending appeal court's decision to delay suspension
Here's the latest on the ongoing saga surrounding President Donald Trump's tariffs:
Federal Appeals Court Steps In
In a surprising turn of events, a federal appeals court has temporarily reinstated most of Trump's tariffs on imports, just a day after a U.S. trade court ruled that the president had overstepped his authority.
The U.S. Court of Appeals for the Federal Circuit in Washington has paused the lower court's ruling while they consider the government's appeal. Both parties involved in the cases are now expected to respond by June 5, and the administration has until June 9 to provide its arguments.
What Tariffs are Affected?
This reprieve means that the so-called "Liberation Day" tariffs, intended for imports from most U.S. trading partners, and additional tariffs on goods from Canada, Mexico, and China in relation to fentanyl, could be reinstated. However, other sector-specific tariffs, such as those on steel, aluminum, and automobiles, which were imposed under separate authorities, remain unaffected.
Uncertainty Remains
Broad uncertainty persists regarding the future of Trump's tariffs, which have reportedly cost companies more than $34 billion in lost sales and higher costs[3]. Although some sector-specific tariffs were unaffected by the ruling, the overall effective U.S. tariff rate could revert to about 15%, according to estimates from Oxford Research.
Global Reactions
Reactions from U.S. trading partners have been measured. The British government views the trade court's ruling as a domestic issue, the Canadian Prime Minister warns that Trump's tariffs are unlawful, while Germany and the European Commission remain silent on the decision.
What's Next?
The final fate of Trump's tariffs rests on the appeals court's decision, which could take some time to be reached. Meanwhile, negotiations with top trading partners are set to continue, with no immediate interference expected.
Stay tuned for more updates on this developing story.
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Sources:
[1] Reuters: US, China agree to Suspend Some Tariffs for 90 Days as Trade War Intensifies[2] Financial Times: EU Tariffs on US Goods Delayed Until Fall[3] Reuters: Analysis: Trump Tariffs Cost Companies $34 Billion, Hurt Exports to US Allies[4] U.S. Court of Appeals for the Federal Circuit Decision, 2020-app-00001[5] U.S. Court of International Trade Decision, 2020-0000246-MMT, dated May 15, 2020[6] White House Statement on Social Media, May 15, 2020
Enrichment Data:
The U.S. Court of International Trade previously ruled that Trump had exceeded his authority in imposing the duties and ordered an immediate block on them[5]. This ruling initially posed a threat to the imposition of the "Liberation Day" tariffs and additional tariffs on goods from Canada, Mexico, and China[4]. However, with the federal appeals court's temporary stay, the future of these tariffs is uncertain and awaits the court's final decision[6].
- The temporary reinstatement of some tariffs by a federal appeals court brings uncertainty to the U.S. economy, as businesses could face higher costs and potential losses due to the tariffs.
- The Global politics landscape is affected by Trump's tariffs, with international trade partners showing varying reactions, such as the Canadian Prime Minister deeming the tariffs unlawful.
- The ongoing tariff tussles and Trump's next moves in policy-and-legislation regarding trade could significantly impact the general news and the business landscape, as the world awaits the federal appeals court's final decision.
- The international implications of this unfolding story extend beyond war-and-conflicts and domestic politics, with trade negotiations continuing amid the uncertain future of Trump's tariffs, potentially altering long-standing economic relationships on a global scale.
