Trump overstepped his authority — the court on the US duties

In April, President Donald Trump announced sweeping duties against the United States' trading partners. But yesterday, the federal court ruled that Trump had overstepped his authority, leading to higher import costs for everyone from large businesses to ordinary Americans.

It was reported by CNN.

Trump's duties — overstepping his authority

On Wednesday, the three-judge panel at the US Court of International Trade halted Trump's duties, referring to the national emergency, including the duties announced on April 2. This, in turn, prevents the White House from applying its tariffs. These are the tariffs imposed on China, Mexico, and Canada to counter the smuggling of fentanyl into the United States.

The court ruled in favor of the permanent injunction, potentially halting Trump's global tariffs even before "deals" are reached with most other trading partners. The court set a window of 10 calendar days for administrative orders to put the permanent ban into effect. It means that most of Trump's tariffs (but not all) will be suspended if the decision is upheld on appeal and possibly in the Supreme Court.

The order halts Trump's 30% tariff against China, 25% tariff on certain goods imported from Mexico and Canada, and 10% universal tariffs on most goods entering the United States.

However, the court's decision does not affect the 25% tariffs on automobiles, auto parts, steel, or aluminium that were subject to Section 232 of the Trade Expansion Act, the different law from the one Trump quoted in his announcement of broader trade actions.

Following the above, the Trump's Administration immediately appealed the court's decision. Currently, the situation for consumers and companies remains uncertain. Moreover, the Trump team's move prolongs the struggle over whether import duties will remain in place and whether they will change the global economy.

As a reminder, Trump recently announced that he had decided to delay the 50% tariff on trade with the European Union. The "pause" will now last until July 9.

We also wrote that about a week ago, Trump threatened to impose 25% duty on Apple.