Both legal cases have been unfolding largely behind the scenes for months. Observers were caught off guard, however, by the speed with which both delivered verdicts. The unanimous verdict of the CIT panel, which included judges appointed by three different US presidents, strengthened the impact of the court’s assessment.
While some of Mr Trump’s inner circle have argued that the decisions should be seen as a minor bump in the road, the willingness of the legal establishment to take on the executive branch and deliver a sweeping verdict suggests that checks and balances against the president’s power on trade and economic policy still exist.
The Trump administration quickly filed an appeal and asked for a stay of the lower court decision pending legal outcomes in the case. This stay has been granted and the examination of IEEPA authority is likely to end up before the Supreme Court.
UNCERTAINTY OVER US TRADE POLICY
Given that these IEEPA-imposed tariffs may be overturned in a few weeks or months, it is not clear whether governments should continue to negotiate, slow the process of talks, or simply wait until there is greater clarity on the future application of reciprocal tariffs.
Regardless, tariffs will continue to be applied by Mr Trump. The courts have ruled on IEEPA, but have left in place Section 232 tariffs for national security and Section 301 tariffs for unfair trade practices.
Source: CNA
