A federal appeals court has decided that President Donald Trump's tariffs will remain in effect for the time being. This ruling allows the tariffs, referred to as "Liberation Day" tariffs, to stay in place while the court reviews the legality of these measures. This decision temporarily overturns a previous ruling from a lower court.
The court's decision covers a wide range of tariffs impacting the majority of the United States' trading partners. It also includes specific duties on imports from Canada, China, and Mexico. These tariffs are related to ongoing efforts to pressure these countries to increase their efforts to prevent the illegal movement of immigrants and synthetic opioids across the U.S. border.
The court has not yet made a final decision on whether President Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose these tariffs is lawful. However, the court has agreed to suspend the lower court's ruling while it considers arguments, which are scheduled to be heard on July 31.
President Trump is the first U.S. president to utilize the IEEPA, a law originally enacted in 1977, typically used to impose sanctions on entities considered adversaries of the United States, to implement tariffs.
This recent ruling follows a May 28 decision by the U.S. Court of International Trade, which asserted that the Constitution grants the power to impose taxes and tariffs to Congress, not the president.
The tariffs have introduced instability into global markets and have presented challenges for American businesses. Many businesses have faced difficulties in adjusting their supply chains and pricing strategies due to the changing policies.
It is important to note that this ruling does not affect tariffs implemented under different legal frameworks, such as those on steel and aluminum.
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