Trump Tariffs Remain in Place Following Appeals Court Ruling

A US appeals court has ruled that Donald Trump can continue enforcing his global tariffs, a win for the president's signature economic policy. The court extended a short-term reprieve granted earlier, despite a lower court ruling blocking the tariffs. The Justice Department argued that ongoing trade negotiations outweighed the economic harm claimed by small businesses that sued.

A U.S. appeals court has ruled that Donald Trump can continue enforcing his global tariffs, extending a temporary reprieve granted earlier. This decision comes despite a lower court ruling that blocked the tariffs. The Trump administration successfully argued that ongoing trade negotiations outweigh the economic harm claimed by small businesses that sued.

On Monday, the Trump administration filed a document with the U.S. Federal Court of Appeals for the Federal Circuit in Washington, D.C., requesting the court to keep the tariffs in place while considering the president's wider legal arguments about his trade policies. The court initially granted a stay on the lower court's injunction that invalidated the tariffs, pending further arguments [1].

The U.S. Court of International Trade (CIT) had ruled in May that Trump lacked authority to impose the tariffs under the International Economic Emergency Powers Act (IEEPA). The CIT's decision was temporarily put on hold by the appeals court, and the court could issue a decision at any time, either keeping the tariffs in place or putting them back on hold pending the outcome of the administration's appeal [2].

The administration argued that reimposing the CIT's injunction would risk "irreparable economic and national security harms." The administration also stated that the lower court misapplied the text of the IEEPA, which would "unnaturally cabin" the president's tariff authority [1].

The U.S. and China have recently agreed to a framework and implementation plan to ease trade tensions, which may impact the ongoing tariff dispute. The U.S. Commerce Secretary Howard Lutnick indicated that the deal should resolve issues between the two countries on rare earths and magnets [2].

This decision by the appeals court is a significant victory for the Trump administration's trade policy. It allows the president to continue enforcing his signature economic policy, which has been a contentious issue in the ongoing U.S.-China trade negotiations.

References:
[1] https://finance.yahoo.com/news/trump-asks-appeals-court-to-keep-tariffs-in-place-or-risk-irreparable-economic-and-national-security-harms-115641842.html
[2] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-us-china-trade-talks-going-well-could-stretch-into-wednesday-lutnick-says-200619400.html