Trump tariffs back in effect while appeals are pending
Import tariffs imposed by President Donald Trump remain in place pending an appeal of a surprise ruling by a U.S. court yesterday that found the tariffs were illegal and should be lifted immediately.
The new ruling, issued yesterday by a New York appeals court, meets a demand from the US government, which threatened to go to the Supreme Court if Wednesday's ruling was not immediately suspended.
Economic emergencyThe ruling states that most of the president's import duties are illegal. In justifying the duties, the government had established that there was an economic emergency. But according to the New York trade court, that argument is not valid.
The administration was given 10 days to comply with the court order and halt the tariffs, Trump's 10 percent global tariff, his much higher "reciprocal" tariffs, and tariffs targeting China, Canada and Mexico for alleged fentanyl trafficking.
That deadline has now been suspended. The decision issued today by the so-called US Court of Appeals for the Federal Circuit offered no explanation, but ordered the plaintiffs in the case to file their responses by June 5, and the government by June 9.
Trump called the ruling wrong and expressed hope that the Supreme Court would reverse the decision.
"The ruling by the United States Court of International Trade is so wrong and so politically motivated! Hopefully the Supreme Court will reverse this horrible, threatening decision SWIFTLY and DECISIVELY," Trump wrote on Truth Social.
According to White House trade adviser Peter Navarro, nothing will change for now. He said the administration would try to impose the tariffs through other means if it loses the lawsuits over its trade policy. He added that the US is also still engaged in trade negotiations with countries.
More setbacksThe administration suffered more setbacks yesterday when a federal judge in Washington issued a separate ruling declaring some of Trump’s tariffs on trade with China and other countries illegal. But in that case, the judge limited his decision to the toy industry party that brought the suit and gave the government two weeks to appeal.
In the video below, you can see how toys, like many other products in the US, are becoming more expensive due to import duties. Trump's response: maybe people should just buy less stuff.
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