The White House is expected to go to the Supreme Court if lower appeals courts don’t protect tariffs
A federal appeals court temporarily reinstated most of President Donald Trump’s tariffs a day after the Court of International Trade’s ruling blocked the administration from imposing the new levies, including a baseline “Liberation Day” 10% duty on almost all imports.
That also included additional levies on imports from Canada and Mexico.
On Wednesday, the trade court ruled that President Trump doesn’t have the authority to use the 1977 emergency legislation, the International Emergency Economic Powers Act, to impose most of the tariffs on countries.
The Trump administration appealed the decision, stating that it undermines US trade negotiations with other nations, which were made possible through reciprocal tariffs.
The White House is expected to go to the Supreme Court if lower appeals courts don’t protect the tariffs.
But levies are here to stay
The White House reportedly has a backup, a plan B that involves using sections of the Trade Act of 1974 to impose temporary tariffs. It allows Trump to impose tariffs of up to 15% for a maximum of 150 days to address trade imbalances, unfair trade practices and national security issues.
Trump’s team is also considering older laws, such as the Smoot-Hawley Tariff Act of 1930, which allows levies on countries that discriminate against the United States.
The shift may preserve Trump’s leverage in the ongoing trade talks.