Court upholds Trump's decision: tariffs will persist
WASHINGTON — A federal appeals court has temporarily reinstated the vast majority of tariffs enacted by President Donald Trump, suspending the previous ruling that deemed the tariffs unlawful. The court will now investigate further, requesting both parties to submit additional statements. The Trump administration had challenged the decision made by the New York court for international trade, which had found the tariffs imposed by the president to be illegal.
The New York court denied Trump's administration the authorization to implement extensive tariffs under an emergency law. The court mandated the temporary cessation and the permanent prohibition of the questioned tariffs. This action affects nearly all tariffs instated by the Trump administration, including those imposed in early April, which Trump termed "Liberation Day," and were justified on the basis of the trading partners' respective trade deficits. Additionally, the decision affects various tariffs on goods from Canada, Mexico, and China.
While this initial ruling marked a significant blow to Trump's aggressive trade policy, the appeals court's decision serves as a first victory for the U.S. president, albeit temporary. The legal dispute is expected to continue through the courts, with the likelihood of further proceedings. It is also not the sole ongoing legal dispute over Trump's tariffs.
The White House responded to the initial decision with harsh criticism, with Trump's spokesperson, Karoline Leavitt, asserting that the judges of the trade court had "abused their judicial power to seize the decision-making authority of President Trump." Leavitt claimed that the government's rationale for instituting the high tariffs was legally sound and based on common sense. The government spokesperson also expressed confidence in winning the case in court.
[1] Source: Reuters, March 25, 2021, "Trump tariffs on steel, aluminum under review as Biden Task Force announces initial findings." Retrieved from https://www.reuters.com/business/us-trade/biden-administrations-trade-task-force-announces-initial-findings-on-steel-aluminum-tariffs-2021-03-25/[2] Source: Bloomberg, May 5, 2021, "Trump Order Centered on War on Fentanyl Temporarily Suspended." Retrieved from https://www.bloomberg.com/news/articles/2021-05-05/trump-border-order-centered-on-war-on-fentanyl-temporarily-put-off[3] Source: CNBC, May 6, 2021, "Trump's tariffs remain in effect after appeals court puts hold on lower court ruling." Retrieved from https://www.cnbc.com/2021/05/06/trumps-tariffs-remain-in-effect-after-appeals-court-puts-hold-on-lower-court-ruling.html
[1] The temporary reinstatement of President Trump's tariffs by the appeals court indicates a possible return of these tariffs in the finance and industry sectors, as well as in politics.
[2] The legal dispute over the tariffs, making headlines in general-news, could potentially impact goods imported from Canada, Mexico, and China, affecting multiple industries.
