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Coverage of Trump tariff developments

  • Writer: Joshua Gibson
    Joshua Gibson
  • May 29
  • 2 min read

Trump tariffs reinstated during appeals process as federal courts consider filings


According to the United States (US) Court of Appeals for the Federal Circuit, federal judges need more time to weigh the filings that have been brought by both sides in the US Court of International Trade (USCIT) decision to suspend President Donald Trump's far-reaching tariffs.

The US appeals circuit has intervened following the USCIT's ruling that the Trump administration has misused the International Emergency Economic Powers Act (IEEPA) to impose global tariffs that exceed the bounds of the law. According to the USCIT, the IEEPA is meant to allow the White House to quickly impose temporary restrictions and trade barriers during a national security crisis, not be used to impose across-the-board policy unilaterally in order to circumvent Congress.


The Trump administration was quick to file an appeal following the USCIT's ruling on Wednesday, and the federal appeals circuit is allowing Trump's "Worldwide Retaliatory Tariff Orders” to remain in place while federal judges review both sides of the decision.


The USCIT ruled against the Trump administration after five businesses and twelve states sued the White House in order to suspend President Trump's widespread application of emergency powers. Under the USCIT's ruling, Trump's 30% tariff on China, 25% on USCMC-exempt goods from Canada and Mexico, and the Trump administration's 10% across-the-board import tax needed to be brought down within ten days of the decision.


Investors were already hunkering down for a long wait to a final decision on the matter; the Trump administration was broadly expected to appeal the decision and immediately begin seeking alternative legal routes to impose its 'tax first, ask questions later' trade policies.


Market reaction


Markets remain overall tepid on the news; the US Dollar Index (DXY) was already down on Thursday, falling back from the 100.00 handle and settling back toward 99.30.




 
 
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