On August 31, 2023, the Trump administration reaffirmed its commitment to ongoing trade discussions with international partners, despite a recent U.S. appeals court ruling declaring that most of President Donald Trump's tariffs are illegal. U.S. Trade Representative Jamieson Greer discussed the matter in a Sunday interview on Fox News' program, Fox & Friends, indicating that negotiations with trading partners remain active. He stated, "Our trading partners continue to work very closely with us on negotiations," emphasizing that countries are moving forward with their trade agreements regardless of the court's interim ruling.
The U.S. Court of Appeals for the Federal Circuit issued a 7-4 decision on Friday, which questioned the legality of the tariffs imposed by President Trump. The court found that while Congress grants the president significant authority to act during national emergencies, it did not explicitly provide the power to impose tariffs or taxes. This ruling specifically addressed the legality of the reciprocal tariffs introduced in April, as well as tariffs imposed on imports from China, Canada, and Mexico earlier in the year. However, it is important to note that the ruling does not affect tariffs established under other legal frameworks.
Following the court's decision, President Trump expressed his discontent, vowing to take the case to the U.S. Supreme Court. He asserted that the tariffs would remain in effect until at least October 14 to accommodate the appeals process. Experts in trade have suggested that the Trump administration was prepared for this ruling and had alternative strategies in place to maintain its tariff policies. Josh Lipsky, chair of international economics at the Atlantic Council, mentioned, "If other countries are looking at this and thinking they're going to get tariff relief, they're in for an unpleasant surprise." He highlighted the potential to utilize Section 338 of a 1930 trade law, which allows the president to impose duties of up to 50% against imports from nations that discriminate against U.S. commerce.
President Trump reiterated his optimism regarding the future of U.S. trade policies in a social media post, stating, "A big year ahead for the USA, maybe the BEST EVER, if the Tariffs are finally approved by the Courts!!!" As the Labor Day holiday approaches, Trump was seen at his golf club in Virginia, emphasizing a proactive stance on trade issues.
White House trade advisor Peter Navarro expressed confidence that the conservative majority in the Supreme Court would support Trump's tariff initiatives. Meanwhile, Republican Senator James Lankford voiced concerns from businesses about ongoing legal uncertainties. He remarked, "Every time there's a new court hearing, every time there's a new change, it's destabilizing for every one of our businesses. So let's get all these things resolved as quickly as we possibly can," during an appearance on NBC News' Meet the Press.
The ongoing situation highlights the complexities of U.S. trade policies under the Trump administration and the significant implications of judicial decisions on international trade relations.
