Trump administration appealed court ruling on illegality of tariffs
Kyiv • UNN
The administration of US President Trump has appealed a court ruling declaring the 10% import tariffs illegal. Meanwhile, the legal battle is still ongoing.
The administration of US President Donald Trump has appealed a court ruling which found that a 10% global customs tariff introduced in February had no basis for existence under a 1970s trade law. This is reported by UNN with reference to Reuters.
Details
On Thursday, May 7, the US Court of International Trade ruled that Section 122 of the Trade Act of 1974 was not intended to address trade deficits that occur when the US imports more goods than it exports. However, the court vacated the tariffs only for the three importers who filed the lawsuit — two small businesses and the state of Washington.
While the ruling affects a series of tariffs set to expire in about two months, it represents another setback for Trump's global customs ambitions and comes a week before his meeting with Chinese leader Xi Jinping in Beijing, where they are expected to discuss trade tensions.
It also sets the stage for another protracted legal battle over the refund of billions of dollars in customs duties — three months after the US Supreme Court struck down Trump's global tariffs imposed under emergency law, the publication says.
Additional Information
In February of this year, the US Supreme Court ruled that Trump did not have the authority to impose previous tariffs under the International Emergency Economic Powers Act.
This forced Trump to introduce replacement tariffs of 10% on all imports, utilizing Section 122 of the Trade Act. The new tariffs were a temporary replacement and were set to expire on July 24 unless extended by Congress.
At the same time, the Trump administration still plans to introduce broader tariffs on major trading partners, citing a third law that has withstood numerous legal challenges — Section 301 of the Trade Act of 1974, which concerns unfair trade practices.
As a reminder
US President Donald Trump announced that he will increase tariffs on passenger cars and trucks from the European Union to 25%. However, the new rules will not apply to European cars and trucks if they are manufactured at plants in the US.