Appeals court reinstates tariffs
Just one day after a three-judge panel in the U.S. Court of International Trade blocked President Donald J. Trump’s sweeping global tariffs, a federal appeals court reinstated the duties on May 29.
According to multiple sources, the original ruling threatened to delay and/or kill tariffs on imports from the majority of the nation’s trading partners, as well as some additional tariffs on goods from Canada, Mexico and China, whom Trump accused of facilitating the flow of fentanyl into the U.S.
However, the U.S. Court of Appeals for the Federal Circuit ruled the Constitution does not give the president authority to levy taxes and tariffs and that Trump had exceeded his authority in invoking the International Emergency Economic Powers Act, which is intended to address threats during national emergencies.
Ultimately, the federal court placed a pause on the lower court’s ruling to give them time to consider the government’s appeal and asked the plaintiffs in both cases to respond by June 5 and the administration by June 9.
According to a May 29 Reuters article by Dietrich Knauth and Sarah Marsh, administration officials seemed undeterred, noting they expect the appeal to prevail or they will simply employ other presidential powers to ensure the tariffs go into effect.
In a social media post, Trump states, “The horrific decision stated I would have to get the approval of Congress for these tariffs. If allowed to stand, this would completely destroy presidential power – the presidency would never be the same. This decision is being hailed all over the world by every country, other than the U.S.A.”
New tariffs
“Some sector-specific tariffs, such as imports on steel, aluminum and automobiles were imposed by Trump under separate authorities on national security grounds and were unaffected by the ruling,” note Knauth and Marsh.
In fact, on May 28 Trump officially doubled tariffs on aluminum and steel to 50 percent, with the exception of imports from the United Kingdom, which are still levied at 25 percent.
Because foreign-made aluminum and steel are used in everything from soup cans, paper clips, stainless-steel refrigerators and cars, many experts believe this could increase costs for both companies and shoppers alike.
In a separate Reuters article published on June 4, the American Automotive Policy Council notes tariffs will likely increase the cost of assembling a car in the U.S., putting the nation’s industry and workers at a disadvantage on the global market.
Additionally, Oxford Economics Lead Economist Bernard Yaros estimates the tariffs will cut business spending on equipment and structures by as much as 0.5 percent.
As America’s top exporter of both steel and aluminum, Canadian Prime Minister Mark Carney tells Reuters Canada is prepared to strike back if these tariffs are not removed.
“We are in intensive negotiations with the Americans and, in parallel, preparing reprisals if those negotiations do not succeed,” Carney states.
Moving forward
Reuters experts report many investors believe current levies may not last and that the president will ultimately “back off from his extreme actions.”
In the meantime, the White House is expecting trading partners to propose deals to help them avoid Trump’s reciprocal tariffs.
In a June 2 article, Reuters reports a letter was sent from Washington, D.C. asking countries to list their best proposals and, in turn, promised answers regarding what tariff rates they can expect after July 8 when the 90-day pause ends.
Hannah Bugas is the managing editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.
