U.S. appeals court restores President Trump’s tariffs

On 28 May, the U.S. Court of Appeals for the Federal Circuit issued a temporary stay on the CIT’s decision, allowing the tariffs to remain in place while the Trump administration pursues its appeal. The plaintiffs, which include several small U.S. importers, must file their response by 5 June, while the government has until 9 June to reply.

Depending on how the case unfolds, it could eventually reach the U.S. Supreme Court, the highest court in the country. However, even if President Trump were to lose there, it wouldn’t necessarily mark the end of his tariff plans.

The appeals court’s ruling acknowledged that the U.S. President holds the authority to impose tariffs of up to 15% for a period of 150 days in response to perceived trade imbalances, which the White House has deemed as an emergency. If the administration decides to pursue this option, analysts at Goldman Sachs suggest that the new tariffs could be implemented within days.

To remind, the U.S. Court of International Trade (CIT) had invalidated all of Trump’s tariff orders since January that were based on the IEEPA, a law designed to address “unusual and extraordinary” threats during national emergencies, with immediate effect. 

While the initial CIT’s ruling was immediately welcomed by many in the shipping industry, it also could signal a potential new chapter of complexity in global trade dynamics according to Emily Stausbøll, Senior Shipping Analyst, Xeneta.

The court decision to deem the sweeping tariffs unlawful is clearly positive news for shippers who have faced extraordinary increases in the cost of importing goods into the U.S., but this should come with a warning—the story is far from over. Even if the appeal fails, Trump is unlikely to back down and has other levers at his disposal to achieve similar outcomes.

…said Emily Stausbøll.