Trump's tariffs upheld: A new twist in the trade battle
The tariff war in the United States continues. On Thursday, the federal appeals court upheld the tariffs imposed by the President of the United States, Donald Trump, which had been blocked the day before by the federal Court of International Trade, stating that Trump had exceeded his authority.
What do you need to know?
- Appeals court decision: The federal appeals court upheld the tariffs imposed by Donald Trump, which had been blocked the day before by the Court of International Trade.
- Arguments from both sides: The appeals court ordered both sides to submit written arguments by the first few days of June.
- Administration's reaction: White House Trade Advisor Peter Navarro announced that the administration would find another way to implement tariffs if they lose in the courts.
What are the next steps in the tariff issue?
The Court of International Trade determined on Wednesday that Trump exceeded his authority by imposing additional tariffs, as only Congress has such power.
The government filed a request for an urgent suspension of this decision with the appeals court.
On Thursday, the federal appeals court decided to uphold the tariffs imposed by Donald Trump.
However, the appeals court did not address the merits of the case but ordered both sides to submit written arguments by the beginning of June.
What does the court's decision mean for international trade?
The appeals court's decision means that the tariffs imposed on Canada, Mexico, and China remain in effect. The U.S. authorities accuse these countries of insufficient action against fentanyl smuggling. These tariffs also include so-called "reciprocal" tariffs that were introduced in early April.
White House Trade Advisor Peter Navarro stated that if the administration ultimately loses in the courts, they will find another way to implement tariffs.