A US federal appeals court on Tuesday issued a temporary administrative stay against a lower court decision that blocked President Donald Trump's 10 percent global tariff, as the legal battle over the import tax continues.
The core issue is whether the tariff, imposed under Section 122 of the Trade Act of 1974, falls within the scope of Trump's presidential authority. Trump enacted the sweeping 10 percent import tax in January, after the Supreme Court struck down another set of far-reaching tariffs justified under the International Emergency Economic Powers Act (IEEPA).
In that case, the Supreme Court ruled that IEEPA does not authorize the president to impose blanket tariffs, as Trump had argued. Similar questions now surround the new tariff policy. On Friday, a panel at the US Court of International Trade ruled 2-1 that Trump failed to meet the criteria under Section 122 to apply the new tariffs.
"The President's Proclamation fails to assert that those required conditions have been satisfied," the lower court ruling stated, adding that the proclamation "is invalid, and the tariffs imposed on Plaintiffs are unauthorized by law."
Tuesday's appeals court decision temporarily paused that ruling to allow the White House time to respond. However, the plaintiffs—a coalition of 24 states—argue that Trump's tariff campaign is an abuse of executive power. They also point to downstream effects, as consumers bear the cost of the added taxes.
"It's American consumers and businesses that have ultimately paid for the president's illegal tariff campaign," Washington State Attorney General Nick Brown said in a statement after Friday's ruling. A consumer price index report issued Tuesday suggested that Trump's tariff campaign has been reflected in a spike in consumer good costs.
Prices for apparel and electronics rose 0.6 percent, while the cost of toys and furniture jumped 0.8 percent. The legal challenge to the Section 122 tariffs is only one hurdle Trump's tax policy faces. Under Section 122, the 10 percent global tariff is set to expire in July unless extended by Congress; its term is otherwise capped at 150 days.
Critics also highlight the uncertainty and regulatory hassle of reversing such tariffs. Tuesday's stay comes as tariffs imposed under IEEPA are starting to be refunded. US Customs and Border Protection anticipates paying refunds of $35.46 billion on 8.3 million shipments processed as of Monday.
Source: www.aljazeera.com