US appeals court reinstates Trump tariff plans | BBC News

Summary

The Trump administration's tariff plan is back on after a brief pause, with the US Court of Appeals temporarily reinstating the tariffs while the case is appealed. The Court of International Trade had ruled that Trump's use of emergency powers to impose tariffs was unauthorized. The White House criticizes the ruling, calling it judicial overreach, and markets react with mixed uncertainty. Key tariffs on steel, aluminum, and automobiles remain in place, with President Trump defending his actions. Experts note the complexity of the constitutional delegation of tariff authority, allowing the administration to continue using alternative legal means.

Takeaways

• 😀 The Trump administration's tariff plan has been temporarily reinstated after a US Court of Appeals halted a previous ruling that would have blocked most of the tariffs.
• 😀 The Court of International Trade found that President Trump overstepped his authority by imposing tariffs using emergency powers without Congressional approval.
• 😀 The White House criticized the court's ruling, calling it judicial overreach and expressing a desire to appeal the decision all the way to the Supreme Court.
• 😀 Stock markets saw a rise in response to news that the tariffs might be deemed illegal and could be struck down, as investors fear a global trade war.
• 😀 President Trump has used tariffs to impose economic pressure on other countries, claiming extraordinary emergency powers due to a national economic crisis.
• 😀 There is public skepticism about the consistency of Trump's tariffs, with accusations that he 'chickens out' by backing down from high tariff threats.
• 😀 Some of the tariffs on imports like cars, steel, and aluminum remain unaffected by the court ruling, while others are still in place pending appeal.
• 😀 The tariffs are not just theoretical; they directly affect consumers and businesses, particularly small businesses, who are impacted by higher import taxes.
• 😀 The UK is the only country to have signed a new trade deal with the US, which lowered tariffs on cars from 25% to 10%.
• 😀 The Trump administration views the appeals court's decision to reinstate the tariffs as a victory, with a quick reversal of the previous court ruling.
• 😀 Ambassador Michael Froman, former US Trade Representative, clarified that the court ruling only affects tariffs imposed using emergency powers, while others on steel, aluminum, and autos remain in place.

Q & A

What is the primary issue in the script regarding US trade tariffs?

The primary issue discussed in the script is the legal challenge to President Trump's trade tariffs. The US Court of Appeals temporarily halted a US trade court's decision that would have blocked most of Trump's tariffs, with the Trump administration preparing to appeal the ruling.

Why did the Court of International Trade rule against Trump's tariffs?

The Court of International Trade ruled that President Trump overstepped his authority when he used emergency powers in April to impose tariffs on nearly every country, claiming it was an overreach of presidential power.

How did the White House respond to the court's ruling?

The White House sharply criticized the court's ruling, calling it a judicial overreach and arguing that the courts should not interfere with presidential decision-making, particularly in diplomatic or trade negotiations.

What was the market's reaction to the legal ruling on Trump's tariffs?

The stock markets saw a small rise as news broke that Trump's trade tariffs might be illegal and could be struck down. The markets are generally averse to the idea of a global trade war, hence the positive response to the potential reduction in tariffs.

What does the term 'taco trade' refer to in the context of Trump's tariffs?

'Taco trade' refers to Wall Street analysts' view that Trump tends to back down or 'chicken out' on his tariff threats. The term highlights the market’s perception that Trump has repeatedly reduced or dropped tariffs after initially imposing high rates.

How has Trump justified his use of emergency powers to impose tariffs?

Trump has justified the use of emergency powers to impose tariffs by claiming that the US is facing a national economic crisis and that other countries have been 'ripping off' America, which he says necessitates such drastic measures.

What impact has the Trump administration's tariff plan had on American consumers and businesses?

The Trump administration's tariffs have resulted in higher import taxes, which have been passed down to consumers and small businesses, particularly through increased prices on goods such as cars, steel, and aluminum.

Which country's trade deal with the US has been unaffected by the court ruling?

The UK's trade deal with the US is the only one that has been unaffected by the court ruling. Cars made in Britain will only be charged 10% in import taxes, as the UK is the first and only country to have signed a new trade deal with the US.

What does the legal ruling mean for future trade deals and tariffs?

The legal ruling means that while some tariffs, particularly on steel, aluminum, and autos, remain in place, the Trump administration may face more legal challenges in imposing new tariffs. It also complicates future trade deals if the tariffs are deemed unauthorized.

What is the constitutional basis for the US president imposing tariffs?

Under the US Constitution, Congress has the right to set tariff rates, but this authority has been delegated to the president and the executive branch under specific conditions, such as national security concerns or unfair trade practices. However, Trump's use of emergency powers has been contested.