The Federal Court of Appeal ruled on Tuesday that the most severe duties of US President Donald Trump may be implemented until legal disputes were resolved, 'CNN station said on Tuesday. Due to the “exceptional meaning” of the case, the full judge will consider new tariffs in accelerated mode this summer.
The decision revokes an earlier court decision on international trade, which decided that the president had exceeded his rights by imposing duties on the basis of the Act on international extraordinary economic rights (IEEPA). Trump justified his actions, citing “emergency”.
Green light for Trump's duties
According to CNN, both parties presented significant arguments, which prompted the Court of Appeal to the conclusion that the temporary suspension of the judgment was justified. Due to the “exceptional meaning” of the case, the full judge will consider it in an accelerated mode this summer.
The applicant in the Trump's duties were American companies that suffered losses as a result of increased tariffs: Vos Selections, Fishus, Genova Pipe, Microcits LLC and Terry Precision Cycling. Their lawyer expressed disappointment with a court decision. He noted, however, that the accelerated analysis could lead to a quick, lasting solution.
Meanwhile, the White House accepted the suspension with satisfaction, emphasizing that Trump's administration uses its rights to manage extraordinary situations, such as a commercial deficit or drug trafficking.
The decision of the Court of Appeal does not affect the previously introduced sectoral duties, e.g. aluminum, steel or cars. They were imposed on the basis of another Act – Trade Expansion Act.
The new duties hit imports
Administration USA He still has other legal tools that allow you to apply tariffs, regardless of the outcome of the IEEP case. Before this trial, the duties imposed on the basis of IEEPA, including the so -called mutual tariffs, 10 % universal tariff and import taxes for Mexico, Canada and China Related to migration and fentanyl, they were to significantly increase the effective tariff rate of the country.
According to CNN, the uncertainty related to legal disputes and the changing customs policy of the president affect import costs and forces companies to consider the transfer of production to the USA.
“Trump called these companies to transfer production to the USA to avoid duties. However, this process requires time and large financial outlays, often years and millions and even billions of dollars,” emphasizes CNN.
Source of the main photo: Amani A/Shutterstock