Trump tariffs temporarily reinstated by federal appeals court; trade court's block on most tariffs overturned due to Congress circumvention.
A federal appeals court temporarily reinstates President Donald Trump's tariffs, defying a lower court's decision that the presidential authority was exceeded. The US Court of Appeals for the Federal Circuit in Washington temporarily blocked the lower court's decision on Thursday, with no reasoning provided, stipulating plaintiffs to respond by June 5th.
The court granted an emergency motion from the Trump administration, asserting that a halt is vital for the country's national security. The White House has welcomed the move, with trade adviser Peter Navarro stating, "Even if we lose tariff cases, we will find another way."
No final decision has been made by the administration, and it may choose to postpone implementing tariffs after Thursday's federal appeals court decision. The Wall Street Journal reported on Thursday that the White House is considering imposing tariffs of 15% on US trade partners for 150 days, invoking a lesser-known provision of the 1974 Trade Act.
This stopgap measure would allow the administration time to develop individual tariff schemes for trading partners using a separate provision of the law targeting unfair trade practices. The process would be lengthy and complex, but would provide tariffs with a stronger legal foundation. Discussions are ongoing at the White House, according to the Journal.
Wednesday's ruling by the US Court of International Trade posed a threat to halt or delay Trump's tariffs on most US trading partners, as well as import levies on goods from Canada, Mexico, and China due to allegations of facilitating fentanyl inflow. The International Court of Trade deemed tariffs issued under the International Emergency Economic Powers Act (IEEPA) an overreach, as the law is narrow in scope, targeting specific countries, designated terrorist organizations, or gang activity linked to specific instances.
Experts believe that the tariffs will not persist, with lawyer Peter Harrell suggesting, "If the trade court's decision is upheld, importers should eventually be able to get a refund of IEEPA tariffs paid to date." The power to decide tariff levels lies with Congress, and the IEEPA does not mention raising tariffs or extend to rewriting the tariff schedule for the world, according to experts.
The US trade court did not address tariffs instated by other laws, such as the Trade Expansion Act, which justified tariffs on steel, aluminum, and automobiles. There are additional targets for similar narrow tariffs, such as pharmaceuticals from China, with the White House launching an investigation in April to scrutinize the US reliance on China for active ingredients in key medications, potentially warranting tariffs.
- The White House has expressed support for the decision made by the US Court of Appeals, viewing it as essential for the country's national security and general-news.
- Despite the temporary reinstatement of President Trump's tariffs, the final decision regarding their implementation remains uncertain, as the administration may choose to postpone the action following the federal appeals court decision.
- Opinions among experts suggest that the tariffs, especially those issued under the International Emergency Economic Powers Act, may not persist, with potential refunds for importers if the court's decision is upheld. However, the power to decide tariff levels lies with Congress, and the IEEPA does not extend to rewriting the tariff schedule for the world.
