A series of court rulings has thrown Donald Trump’s global trade war into legal limbo.
What happened: A federal appeals court on Thursday agreed to temporarily block a lower court’s decision that had overturned President Donald Trump’s Liberation Day tariffs, reversing the ruling in less than 24 hours.
- Before it was reversed, the court decision struck down all of the global reciprocal tariffs as well as the fentanyl-related levies on Canada, Mexico, and China.
Why it matters: Tariffs are the foundation for Trump’s entire economic agenda. Regardless of what happens in court, experts believe the administration will find other ways to keep its tariff crusade rolling.
- Potential backup plans include applying 150-day tariffs or new sector-specific duties, launching new trade investigations, or leaning on national security laws to bring back the levies in different forms.
Big picture: The way this legal saga plays out could set the precedent for how Trump — and any future president — can use so-called emergency powers to unilaterally pass their agenda. Ultimately, experts say the final word could end up with the Supreme Court.
What’s next: Despite the legal grey area, the administration indicated it will push ahead with its tariff negotiations and expects to cut more deals with trading partners in the coming weeks.—LA