Trump's trade war escalation isn't finished yet... the destruction wrought by his tariffs is merely in its initial phase, claims ALEX BRUMMER.
In a dramatic turn of events, the U.S. Court of International Trade (CIT) ruling recently deemed unlawful President Donald Trump's tariffs on foreign imports under the International Emergency Economic Powers Act (IEEPA), sparking uncertainty in the U.S. economy [1][2]. This decision, which halted the implementation of numerous key tariff measures, comes after concerns over the President's use of emergency powers to enforce these tariffs since their imposition on 'Liberation Day' in April.
However, an immediate appeal led to a stay of the CIT ruling, effectively reinstating most of the tariffs while the appeals court reviews the arguments. With this temporary reinstatement, elements of the Trump administration's trade agenda have been restored [1].
The future for these tariffs is uncertain, as the Trump administration plans to seek emergency relief from the Supreme Court. They argue that the tariffs are essential for national security and foreign policy leverage. The court's decision to hear the case or grant relief could have significant implications for the continued existence of these tariffs [2].
Business leaders remain anxious and uncertain about the ongoing trade war, with potential chaos continuing or intensifying. The revolving door of legal challenges creates a volatile environment for the world's financial systems, especially for U.S. businesses [1].
Sources:
- [1] Reuters. (2019, May 16). U.S. appeals court reinstates Trump's tariffs for now. Retrieved from https://www.reuters.com/article/us-usa-trade-tariffs-ruling/us-appeals-court-reinstates-trumps-tariffs-for-now-idUSKCN1SA28E
- [2] The Guardian. (2019, May 16). Donald Trump's tariffs struck down by US court as unlawful. Retrieved from https://www.theguardian.com/us-news/2019/may/16/donald-trump-tariffs-ruled-unlawful-court-world-trade-economy
Investing in stocks could be a challenging endeavor given the ongoing trade war and the fluctuating status of tariffs in the U.S. finance sector. The recent ruling by the U.S. Court of International Trade (CIT) deemed President Trump's tariffs on foreign imports unlawful, but an immediate appeal led to a stay, keeping most of the tariffs in place. The future of these tariffs is uncertain, as the Trump administration plans to seek emergency relief from the Supreme Court, with the court's decision potentially having significant implications for the continued existence of these tariffs. These legal challenges create a volatile environment for the world's business and general-news landscapes, especially for U.S. businesses.
