The US Court of International Trade has ruled to overturn a number of tariffs imposed by President Donald Trump on China and other trading partners. The court concluded that the Emergency Powers Act does not grant the president “unlimited authority” to impose tariffs on imports from nearly all countries worldwide. Consequently, President Trump does not have the right to unilaterally impose such extensive restrictions. Currently, the Trump administration is appealing this decision.
This is reported by Business • Media
Which Tariffs Have Been Overturned and Who Is Affected
The court’s ruling does not apply to tariffs that were enacted under specific legal acts, particularly those concerning steel, aluminum, and automobiles. However, it does revoke executive orders imposing 25% tariffs on goods from Canada and Mexico, 20% on Chinese goods, and a 10% tariff on imports from all US trading partners. Additionally, it suspends the “reciprocal” tariffs ranging from 20% to 50% for about 60 countries that have trade relations with the United States.
Immediate Reaction of Global Markets
Immediately following the announcement of the court ruling, stock markets around the world showed positive momentum. Specifically, the Japanese Nikkei index rose by 1.7%, the South Korean KOSPI by 1.8%, European futures gained 1%, and the tech-heavy Nasdaq climbed by 2%. Alongside this, the US dollar strengthened against other currencies, and the yield on ten-year US bonds also increased. In light of the news, the price of Brent crude oil rose by $1.03, reaching $65.93 per barrel.
The US Court of International Trade has prohibited President Trump from imposing some of his highest tariffs on China and other trading partners, as the Emergency Powers Act does not grant him “unlimited authority” to tax imports from nearly every country in the world. The Trump administration has filed an appeal.