Top Trump administration officials downplayed on Thursday the effects of a US trade court decision to block the most sweeping of President Donald Trump’s tariffs, saying they were confident the ruling would be reversed on appeal. They also emphasized other legal avenues are still open to impose tariffs in the interim.
The US Court of International Trade on Wednesday held that Trump had overstepped his powers by imposing retaliatory tariffs on virtually all countries across the globe under emergency powers. The decision triggered measured optimism in financial markets, which have remained volatile amid the ongoing trade war.
Contrary to the ruling, however, there remains uncertainty regarding Trump’s tariff policies, which have cost American companies over $34 billion in higher costs and lost sales, Reuters analysis reveals.
On the same day, a second court temporarily enjoined the tariffs from being applied to education toy maker Learning Resources, after its court challenge. US District Judge Rudy Contreras permitted the case to proceed but blocked only the tariffs from being imposed on the toy company.
The administration immediately called on an appeals court to suspend the trade court decision and uphold the tariffs. White House economic adviser Kevin Hassett promised the decision would not disrupt current trade negotiations and forecasted it would be overturned. He played down the significance of judicial reverses, which he said had limited influence on trade negotiations with nations such as Japan and India, both of which are still on track for talks in Washington.
Trade advisor Peter Navarro emphasized that other legislation may be employed to impose tariffs if the court ruling holds. Trump had used the International Emergency Economic Powers Act (IEEPA) to impose blanket tariffs, but the court ruled that it did not permit such large-scale measures.
Canada embraced the decision, while other trading partners like the UK, Germany, and the European Commission took a reserved approach, pointing to the fact that the legal process is still ongoing.
