Trump’s tariffs get green light to stay: What does it mean?

Donald Trump can continue enforcing his global tariffs for now while the appeals process moves forward, a federal appeals court ruled on Tuesday, June 10 – marking a victory for the United States president on one of his key economic policies.

The order Tuesday by the US Court of Appeals for the Federal Circuit extends an earlier, short-term reprieve for the Trump administration as it presses a challenge to a lower court ruling last month that blocked the tariffs.

The Justice Department argued that the concerns of US officials over ongoing trade negotiations took precedence over the economic harm reported by the small businesses that filed the lawsuit.

What does it mean? The court ruling means that President Donald Trump can, for now, continue enforcing his “Liberation Day” tariffs on imports from most US trading partners.

This includes a separate set of tariffs specifically imposed on Canada, China, and Mexico. Also Read | 21 times Trump changed his mind about tariffs since February 7, a curated list of events

The order giving a green light to Trump's tariffs also comes before the US President's 90-day pause on the reciprocal tariffs is set to expire.

On July 9, US tariff rates are set to increase drastically for many nations, absent a trade or further extension. Goods from the European Union, for instance, are facing a 50 per cent levy.

The Appeals court also put the case on an expedited track, citing the “issues of exceptional importance” at stake. The arguments are now scheduled for July 31. Also Read | 

The Trump administration turned to the appeals court after the US Court of International Trade ruled last month that Trump had improperly used an emergency law to impose the tariffs.

The tariffs, used by Trump as negotiating leverage with US trading partners, and their on-again, off-again nature have shocked markets and whipsawed companies of all sizes as they seek to manage supply chains, production, staffing and prices.

(With agency inputs)