On May 30, the United States Court of Appeals sided with President Trump’s trade agenda. Tariffs, as they were, will stay. The federal appeals court ordered plaintiffs in the cases to respond by June 5 and Trump’s administration by June 9.
Days prior, the US Court of International Trade (USCIT) ruled that US tariffs imposed under the International Emergency Economic Powers Act (IEEPA ) fall outside the authority which that executive law invokes.
“This court does not read the words ‘regulate . . . importation’ in IEEPA as authorizing the President to impose whatever tariff rates he deems desirable. Indeed, such a reading would create an unconstitutional delegation of power...” read the court filing . “The court holds for the foregoing reasons that IEEPA does not authorize any of the Worldwide, Retaliatory, or Trafficking Tariff Orders...”
Immediately, the US Department of Justice (DOJ) appealed the court case. The case may make its way to the US Supreme Court, sources speculate. For now, US Customs and Border Protection (CBP) will continue collecting all IEEPA duties.
Thus far, reciprocal tariffs and fentanyl-related tariffs from Trump’s trade team have been imposed quickly under IEEPA—citing that tariffs are necessary to address a national emergency.
However, the IEEPA was not used to invoke all US tariffs under the Trump administration. So, the court ruling does not cover the Section 301 tariffs that can go up to 100% and were first imposed on some Chinese goods in the first Trump administration to address unfair trade practices. Additionally, the new court ruling does not apply to sector-specific tariffs like the 25% on steel and aluminum, or on foreign automobiles.
Since last week, US President Trump’s proposed 50% tariff on the European Union (EU) was put off so trade negotiations could move along. However, there has not been an update regarding a US-EU trade deal regarding reciprocal tariffs.
