Скачать или смотреть U.S. court ruling puts some Trump tariffs in legal limbo

Late last week, a U.S. federal court ruled against the Trump administration's use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. The ruling raises new questions about the future of tariffs imposed under Donald Trump.

What happened?
On August 30, the U.S. Court of Appeals for the Federal Circuit ruled 7–4 that the Trump administration’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unlawful. While the court determined that the act does not give the president unilateral authority to implement tariffs, it allowed tariff collections to continue until October 14 (Not an insignificant number, totalling US$28 billion in July alone)

Who is involved?
The case involves the Trump administration, which has used IEEPA to justify tariffs without congressional approval. The White House plans to appeal the ruling at the Supreme Court level, betting on the court’s tendency to defer to the executive on foreign policy matters. D.C. policy analyst Jim Wiesemeyer, says that the ruling could affect agriculture and broader trade relationships.

“The Supreme Court... usually doesn’t like to go against the executive branch regarding foreign policy and so-called emergencies,” said Wiesemeyer, hinting the Trump administration may find support at the highest court.

When will the issue be resolved?
A final resolution could be years away. Wiesemeyer says the Supreme Court may only hear the case in early 2026, meaning the current tariff system could stay in place for the foreseeable future. The case will be a complicated one and could go either way, Wiesemeyer says, depending on which legal argument the Supreme Court agrees with. 

Where does this matter most?
While Canada and Mexico were initially impacted, Wiesemeyer pointed out that countries like Japan, the U.K., and the EU faced steeper tariff pressure. However, Canada remains at risk of renewed tariffs if the administration seeks alternative tools, such as steel or aluminium duties should the IEEPA route be shut down. "By no means are tariffs going to go away," he says. 

Why does it matter?
The ruling introduces uncertainty for global trade and may complicate U.S. negotiations with countries like India, where talks are already stalled. It also carries economic consequences: “You’re seeing it in the bond market,” says Wiesemeyer. “It could have an interest rate development if the Supreme Court would rule against the White House."

In the meantime, the White House may be cautious spending collected tariff revenue in case it must issue refunds, and the ruling is just another layer of uncertainty in trade with the U.S. 

Website: https://www.realagriculture.com/
#trade #tariffs #tradewar #farming
Find us on our other social media platforms:
X/Twitter:   / realagriculture  
Instagram:   / realagriculture  
Facebook:   / realagmedia