The US Court of Appeals for the Federal Circuit ruled on Tuesday that the “Liberation Day” tariffs imposed by former President Trump and those on Canada, China and Mexico could remain in effect during the appeal hearing. Previously, on May 28, the US Court of International Trade ruled that Trump’s imposition of tariffs under the International Emergency Economic Powers Act exceeded the president’s authority. However, the appellate court held that the case involved “extremely important” issues and decided to have it heard by all 11 judges, with a hearing scheduled for July 31.
The Trump administration used tariffs as bargaining chips in trade negotiations, and its policies had an impact on the market and enterprises. White House spokesman Kush Desay said that the tariffs were a “national emergency” to address the trade deficit and drug trafficking, and emphasized that the government was confident of winning the lawsuit. However, Jeffrey Schwab, a lawyer at the Free Justice Center, the prosecution, said that all courts had previously ruled these tariffs illegal and believed that the appellate court would eventually reach the same conclusion.
This is the first time that Trump has used the International Emergency Economic Powers Act to impose tariffs, which has traditionally been used to sanction hostile countries. States and small businesses believe that trade deficits and drug problems do not constitute a “national emergency”, and tariffs are not a legal solution. At present, at least five similar lawsuits are ongoing and no court has supported Trump’s tariff claims.
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