Trump tariffs struck down, but tariff uncertainty remains
Tariff ruling marks potential turning point in US trade strategy, though near-term implications remain limited.
The recent decision by the Court of International Trade that many of US President Donald Trump’s recent tariffs overstepped the President’s authority, has significant implications for global trade flows. However, there are ways for the administration to get around the decision, so until we get more clarity, we are leaving our macro forecasts unchanged.
The case was brought before the court by a group of plaintiffs including a number of small businesses negatively impacted by the tariffs and a collection of 12 US states. The judges made clear that this ruling was unrelated to the “wisdom or likely effectiveness” of the use of tariffs but rather that the recent tariffs “exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs”.
There are several routes for the Trump administration to attempt to circumvent this decision. The Trump administration has already stated that they intend to challenge the decision in the Court of Appeals and failing that, the Supreme Court.
