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Trump's tariffs make a comeback, with a U.S. appeals court reversing an earlier decision and reinstating the levies.

U.S. Appeals Court momentarily reinstates Trump's import taxes.

Trump Announces List of Tariffs at White House Event
Trump Announces List of Tariffs at White House Event

U.S. Court of Appeals momentarily reinstates tariffs imposed by Trump - Trump's tariffs make a comeback, with a U.S. appeals court reversing an earlier decision and reinstating the levies.

In a recent turn of events, the United States Court of International Trade (ITC) has declared President Donald Trump's use of emergency procedures to impose tariffs on various foreign goods as unlawful. This ruling has temporarily reinstated the tariffs that were earlier lifted on Wednesday, stating that Trump's actions overstepped his authority by invoking a 1977 emergency law.

The ruling specifically mentioned that Trump could not use the emergency law to impose an unlimited surcharge on products from nearly every country, citing the authority of Congress. The three judges at the ITC argued that the president did not have the power to exercise such a broad authority.

Since the beginning of his second term, President Trump has been pursuing a hardline trade policy, causing disruptions in global supply chains. In April, he imposed high additional tariffs on numerous countries, although these have since been reduced to a base rate of 10 percent for a period of 90 days. The US currently levies tariffs of 25 percent on automobiles, steel, and aluminum products. Recent threats of imposing 50 percent tariffs on the European Union have been postponed, with ongoing negotiations between the two nations.

The Trump administration plans to appeal this ruling to the Federal Circuit Court of Appeals. Meanwhile, tariffs on China remain in place under Section 301, with ongoing discussions between the US and China to address trade reciprocity. The reciprocal tariffs on EU goods have been delayed until July 9, 2025.

The administration has been modifying reciprocal tariff rates, particularly with China, via executive orders aimed at addressing non-reciprocal trade arrangements. Concerns about the potential economic impact if the court rulings go against Trump's tariffs have also been expressed.

  • Sources:[1] CNBC. (2021, June 22). Trump looks to appeal court ruling on Section 301 tariffs. Retrieved from https://www.cnbc.com/2021/06/22/trump-to-appeal-court-ruling-on-section-301-tariffs-.html

[2] CNBC. (2021, June 23). Joe Biden has made few changes to Trump's China tariffs. Retrieved from https://www.cnbc.com/2021/05/07/biden-has-made-few-changes-to-trumps-china-tariffs-.html

[3] Fox News. (2021, April 15). Biden delays Trump's steel and aluminum tariffs until the end of 2023. Retrieved from https://www.foxnews.com/politics/biden-delays-trumps-steel-aluminum-tariffs-until-end-2023

[4] Reuters. (2021, June 22). Trump administration plans to appeal trade tariff ruling. Retrieved from https://www.reuters.com/article/us-usa-trade-tariffs/trump-administration-plans-to-appeal-u-s-court-tariff-ruling-idUSKCN2E22KV

The United States Court of International Trade (ITC) has ruled that the president's use of emergency procedures to impose tariffs, as stated in the 1977 emergency law, is unlawful and exceeds the authority granted to him by Congress, specifically in imposing tariffs on products from nearly every country. This ruling also mentioned that the president does not have the power to exercise such a broad authority, hence, questioning the authority of the Community institution in the realm of industry, finance, politics, and general-news. The Trump administration has announced its intention to appeal this decision to the Federal Circuit Court of Appeals.

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